Dr. John's owner, John Haltom, filed a lawsuit against the city in 2003, claiming the city's ordinances regarding adult entertainment were too restrictive and violated his First Amendment rights of freedom of expression. Haltom also claimed the city amended its ordinances to keep him from opening his store.
Heltom was granted an injunction to keep his store open while the case was pending.
A federal judge later declared the ordinance unconstitutional.
The Sioux City Council approved the settlement. One City Council member said that settling the case was in the best interest of city taxpayers, rather than having the case drag on for years.
A call to Heltom for comment was not returned at press time.