The negligence lawsuit claimed Murley on May 29, 2008, was singled out at Corpus Christi International Airport, before a flight home.
One male TSA agent allegedly said he wished he would have been there when Murley was being searched and later told Murley "he would just have to watch the video."
Assistant U.S. Attorney Gordon Bryant Jr. declined comment.
TSA spokesman Luis Casanova says there is no disciplinary action when a settlement is reached. Casanova says TSA regrets that Murley had an unpleasant experience.