Sixty-three-year-old Philip Prechtel died at the Best Western Allentown Inn & Suites hotel in January 2008.
A makeshift canopy placed on the side of the hotel during a remodeling project captured carbon monoxide gas was that got into the room where Prechtel and his wife were sleeping. Katherine Prechtel was hospitalized but recovered.
The terms of the settlement, reached last week, were not disclosed.
The Prechtels had spent most of their lives in the Allentown area before retiring to Hilton Head Island, S.C. They were back in the Lehigh Valley for their granddaughter's christening.
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Information from: The Morning Call