Under the settlement agreement that avoids a trial in US District Court in New York, each of the approximately 7,500 interns will be paid $700 to $1,900.
"We do think this is a favorable settlement," one of the interns' attorneys, Rachel Bien, said.
Conde Nast ended its internship program after Lauren Ballinger and Matthew Leib filed their collective lawsuit in June 2013, claiming the mass media group violated labor laws by paying its interns far below minimum wage.
Leib earned just $300-500 for each of the two summers he interned for The New Yorker. Ballinger claimed she was paid only $1 per hour when she worked for W magazine in summer 2009.
Some of Conde Nast's other high-end magazines include Vogue, Vanity Fair and Bon Appetit.
Several other media groups have recently been the subject of similar lawsuits.
Last month, NBC Universal agreed to pay $6.4 million to settle a class suit brought by thousands of unpaid or underpaid interns. It was ordered to pay $505 to each former intern. The complaint was filed in July 2013.
Condé Nast chief executive officer Chuck Townsend said he still believed the company's magazine internships "were among the best in the media business".
"Settling the lawsuit is the right business decision for Condé Nast, as it allows us to focus our time and resources on developing meaningful, new opportunities to support future up-and-coming talent," he said in an internal email to staff.
