There goes this month’s parking ticket profits.

The city has agreed to pay a $257,000 settlement to 32 Bushwick teenagers who were rounded up and arrested while walking to a friend’s funeral.

On May 21, 2007, the group was on its way to a wake for Donnell McFarland, 18, a member of a Bloods gang faction in Bushwick, when officers from the 83rd Precinct stopped them and charged them with unlawful assembly and disorderly conduct. According to the kids’ attorney Michael Scolnick, six of the boys and girls, each under 16 years of age, were in custody from two to six hours and cuffed to a pipe or a vending machine.

During a rally at 1 Police Plaza earlier today, the group announced each teenager will receive between $9,000 and $23,000 for being falsely arrested and prosecuted.

As in the recent Gamalier Reyes incident, the exact truth may be somewhere in between the two sides’ accounts. But the law has ruled in favor, this time, of the defendants.