Houston City Attorney David Feldman on Monday announced the agreement with the club called Treasures.
The city and Harris County in May went to court seeking to close the club for allegedly harboring prostitution, drugs, illegal weapons and sexual assault. Lawyers for Treasures denied the allegations.
The Houston Chronicle reports Treasures attorney Casey Wallace says he's pleased with the settlement and has called on county attorneys to dismiss their case. First Assistant County Attorney Terry O'Rourke says the county plans to go to trial.
The newspaper has submitted a Texas Public Information Act request for details of the confidential settlement.
