Binghamton bought out former coach Kevin Broadus, who led the program to its first NCAA Tournament appearance.
Broadus will receive a $1.2 million settlement in exchange for his resignation and the withdrawal of any future lawsuits or claims against the university.
Broadus filed a racial discrimination lawsuit and requested to be reinstated after a NCAA investigation found no major violations took place during his watch.
Binghamton will pay $819,115 and the State University of New York will pay $380,88, interim president C. Peter Magrath told the Associated Press.
Mark Macon took over as interim coach.