Flint has agreed to a $250,000 settlement with its former finance director, who claimed he was fired for exposing the city's poor finances.
Flint emergency manager Michael Brown approved the deal on July 19.
Mike Townsend claims he was fired by Mayor Dayne Walling in 2011 because he gave records to the state showing Flint was in poor shape. A financial emergency soon was declared, and the city has been operating under a state-appointed manager.
Flint says it's settling the lawsuit based on advice from its lawyers.
Townsend's attorney, Tom Pabst, says city officials wanted Townsend to "spin" the numbers to state officials but "he just wouldn't do it."