
The settlement came days before the suit filed by Munir Zanial against the Spirit Boeing Employees Association was due to start.
A report by the Associated Press published in The New York Times said Munir had rented a pavilion at the lake in 2017 to celebrate Malaysia’s Independence Day.
The lawsuit alleged the association suspended his rental privileges and reported him to authorities.
The report said it was alleged that an American flag had been desecrated by Islamic State group symbols. But the flag was actually a Malaysian flag and the guests included some Malaysians wearing hijabs, it said.
It said the filing on Friday at the US District Court did not detail settlement terms. The trial had been scheduled for Tuesday.