NEW HAVEN, Conn. (CBS Connecticut and AP) – A Connecticut yacht club has settled a lawsuit by a Muslim businessman and his wife who said club board members rejected their membership application because of their religion and falsely claimed they supported terrorism.

A document filed Friday in New Haven Superior Court says Pine Orchard Yacht & Country Club, in Branford, settled with Kamran and Kara Farid. Terms were not disclosed.

Kamran Farid and a lawyer for the yacht club declined to comment, citing a confidentiality agreement.

Kamran Farid is a co-founder of the Edible Arrangements fruit bouquet business. He and his wife say the club ended their temporary membership and refused to grant them permanent membership in 2015 after some club members made racially insensitive comments about them.

Club officials denied the allegations.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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