Mark Duggan, 29, was mortally wounded by police, who suspected his involvement in a gang and his ownership of a handgun, after officers forced a taxi he was in to stop on a London street.
The inquest jury ruled, by an 8-2 margin, that although Duggan had tossed the gun away before being shot, police acted legally when they fired at him, the British newspaper The Guardian reported.
The gun was found 3 to 6 meters (10 to 20 feet) away from where the injured Duggan fell to the pavement, the jury heard in testimony.
Outrage over the shooting triggered rioting in London.
After the findings were read Wednesday, Duggan's mother Pam collapsed in the courtroom, and his brother Marlon shouted at the jury as it left the courtroom, the newspaper noted.