James Joseph Lisicky and his son, James Michael Lisicky, sued the city of Bethlehem and police claiming they were attacked after witnessing a fight during Musikfest 2000.
The Lisickys said they reported the fight and were told to wait in the area. The elder Lisicky said he was then attacked by responding officers after he didn't leave the scene.
Father and son were both charged with crimes and later acquitted.
An attorney representing the city on Tuesday told The Express-Times of Easton the city's insurer opted to settle the case and avoid additional costs. The city admitted no wrongdoing.