The state of Virginia will spend $212,500 in taxpayer funds to settle a $40 million lawsuit filed by Elizabeth Daly, the University of Virginia student who spent a night and much of the next day in jail after seven cunningly plain-clothed agents from the Alcoholic Beverage Control division ambushed her for the crime of purchasing bottled water.

Attorneys for Daly reached the settlement agreement with lawyers with the Virginia Attorney General late Wednesday, reports The Daily Progress.

Daly's attorneys filed her complaint in March. The 12 counts include constitutional rights violations and the use of excessive force. The defendants in the case are the state and the seven agents from the state's Alcoholic Beverage Control agency.