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Virginia settles lawsuit with U.Va. student who was arrested after water was mistaken for beer

The state of Virginia has reached a $212,500 settlement with a University of Virginia student who was arrested after her purchase of water was mistaken for beer.

Attorney General Mark R. Herring announced the settlement Wednesday night with Elizabeth Daly, who had filed a $40 million federal lawsuit against agents with the state Alcoholic Beverage Control.

Herring said the settlement was not an admission of wrongdoing by any of the parties in the lawsuit.

Daly fled in terror outside a Charlottesville, Virginia, supermarket in April 2013 when her vehicle was swarmed by state ABC agents who mistook her just-purchased carton of sparkling water for beer.

Daly was charged with eluding police and assaulting a police officer after her SUV grazed two agents. The arrest provoked a public outcry, and the charges were dropped.

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