The Department of Justice has settled a case involving a suburban Philadelphia swim club accused of discriminating against minorities after it canceled a 2009 contract with a day camp serving mostly black and Hispanic children.

The agreement resolves federal, state and private complaints filed against the Valley Club, in overwhelmingly white Huntingdon Valley.

Club officials had said there weren't enough lifeguards for the campers. But the children reported hearing racial slurs at the pool.

The club later filed for bankruptcy. It was bought by a Philadelphia synagogue for nearly $1.5 million.

Campers will get a portion of that money after court costs are paid. Camp lawyers say up to $1.1 million could be shared among 73 plaintiffs.

The settlement was announced Thursday. It must be approved by a federal bankruptcy judge.