June Brashares was hustled out of the convention hall after she stood on a chair and interrupted President Bush's acceptance speech.
Police claimed Brashares kicked a guard with her high heel so hard that his leg bled.
But ABC7's Mark Matthews and photographer Mike Clark saw that Brashares was barefoot during her protest; their testimony helped her beat an assault charge.
Thursday's settlement was reached with the city of New York, which was responsible under the agreement it had with the hosts - who were the Republican National Committee.
