Credit Suisse Group AG said it reached a settlement with a former executive and private investigators over a spying scandal that rocked the bank.

In fall 2019, the Swiss bank hired investigators to spy on Iqbal Khan, a top wealth-management executive who was leaving to join rival UBS Group AG . Mr. Khan spotted one of the investigators and went to the police, setting off international headlines and leading to the ouster of the bank’s chief executive over the reputational fallout.

The settlement involves ending criminal complaints between Mr. Khan and the investigators and related legal action.

“All involved parties have agreed to settle. This matter is now closed,” a Credit Suisse spokeswoman said. A spokesman for Mr. Khan declined to comment. A lawyer for the investigators didn’t immediately respond to a request for comment.

Switzerland’s financial regulator, Finma, still has enforcement proceedings open against the bank over its surveillance activities. Credit Suisse was later found to have spied on other staff.

The spying scandal is one of a slew of legal and reputational knocks dogging the bank. This spring, it lost $5.5 billion from the failure of family office Archegos Capital Management, and it and its customers may lose money from the collapse of a financing partner, Greensill Capital.

New Chairman António Horta-Osório has vowed to review the bank’s risk management, strategy and culture.

Swiss news outlet NZZ am Sonntag reported earlier Sunday on the settlement.

Credit Suisse initially said the spying on Mr. Khan was an isolated incident, then admitted in December 2019 it had spied on another executive earlier that year. It blamed its chief operating officer and security chief for inappropriately ordering surveillance on Mr. Khan and the other executive. The chief operating officer and security chief both left the bank and haven’t commented.

At least two more staff were put under physical observation previously, in 2017 and in 2018, in incidents that weren’t related to those in 2019, The Wall Street Journal has reported.

The reputational fallout from the 2019 episodes led to Tidjane Thiam being forced out as chief executive by the board. He has said he didn’t know about the surveillance, but lost the board’s confidence for failing to contain the reputational damage.

Write to Margot Patrick at margot.patrick@wsj.com