Minnesota school officials and a company supervising a charter school tied to the Muslim American Society reportedly have settled a lawsuit with the American Civil Liberties Union, which believes the school's religious programs violate the Constitution's Establishment Clause.

Islamic Relief USA, which has supervised the Tarek Ibn Ziyad Academy (TiZA), will pay the ACLU $267,500 to settle the lawsuit, the Minneapolis Star Tribune reports. The state isn't paying any money, but commits to new procedures to make sure other publicly-funded charter schools keep religious promotion out of their curriculum.

The school itself is not a part of the settlement. "The ACLU is many miles away from any settlement with TiZA," attorney Peter Lancaster told the Star Tribune. "We haven't really been able to agree on anything in the case."

The school is run by officials with the Muslim American Society's Minnesota chapter. Its defamation countersuit against ACLU was dismissed and last fall, a judge ruled that the school's behavior in the case "has not been consistent with a good faith search for the truth."

The settlement is expected to include a statement of facts about the school's operation that will be filed publicly. Islamic Relief's settlement payment should send a message "that sponsoring a [publicly-funded] religious school can be an expensive proposition," Lancaster said.