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The decision backs the recommendation of an NYPD administrative judge earlier this month that Pantaleo should be fired for his role in Garner's death in 2014.
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The department is giving federal authorities a deadline to announce action in the 2014 death of Garner, who died after being put in a chokehold by a police officer.
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The settlement with Garner's family won't require the city to admit liability for his death. The unarmed black man died after police placed him in a chokehold last year.
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As word spread of a grand jury's decision not to indict a police officer in the death of a Staten Island man, so did plans for protests. A key target: the Christmas tree at Rockefeller Center.