NEW YORK - The American Civil Liberties Union says New York-based JetBlue [JBLU] Airways Corp. and the Transportation Security Administration paid $240,000 to settle a complaint by an Arab and U.S. resident who claimed he was discriminated against based on his ethnicity and Arabic writing on his T-shirt.

Raed Jarrar, an Iraqi, alleged the TSA and JetBlue officials prevented him from boarding a flight from John F. Kennedy International Airport in August 2006 until he agreed to cover his shirt.