The company agreed to pay $835m (Â£602m) - less than the $1.06bn a court in Kansas ordered it to pay in 2013.
Dow was hoping the Supreme Court would overturn the ruling, but the death of Justice Scalia left it evenly spilt between conservatives and liberals.
A split decision in the Supreme Court reverts to the lower court's ruling.
In a statement Dow said it settled because of the "increased likelihood for unfavourable outcomes".
The company said it still believed the original verdict was "fundamentally flawed," but felt settling was in the best interest of shareholders.
Last year, Dow announced plans to merge with competitor DuPont in a $130bn deal.
Dow Chemical agreed to settle a class action lawsuit after determining the death of Supreme Court Justice Antonin Scalia made victory less likely.