A student at the University of Virginia wrongly arrested after buying seltzer water, has settled her lawsuit for $212,500.

According to Campus Reform, Elizabeth Daly settled with the Virginia Commonwealth in a lawsuit where she initially was seeking $40 million. She filed the suit shortly after being arrested and jailed.

In April 2013, Daly, 20 at the time, bought a case of seltzer water, cookie dough and ice cream for a charity event her sorority was hosting. Dressed in plainclothes, Alcoholic Beverage Control (ABC) officers were staking out the establishment in an attempt to catch minors buying alcohol.

Daly previously told the Daily Progress that the officers approached her with "unidentifiable badges" and surrounded her car, banged on the windows and one even drew a firearm. Scared, she fled with her two roommates in her car while she dialed 911. The dispatcher then reportedly told her that they were officers in plainclothes, at which time she pulled over and submitted to arrest.

The only problem was she committed no wrongdoing in the first place. Charged with felony counts of assaulting an officer and eluding police, Daly had to spend a night in jail. After learning the beverage she bought that night was only water, all charges were eventually dropped.

The Richmond Times Dispatch reported in March that Daly filed her lawsuit accusing the ABC of not properly training their agents and the officers of assault and battery.

Attorney General Mark R. Herring released a statement coinciding with the lawsuit settlement, stating he tried to be fair "to all parties" involved throughout the incident.

"My goal throughout this case has been to reach a resolution that is just and fair for all parties, including Ms. Daly, the ABC and its agents, and the Commonwealth and its taxpayer," he said. "After careful consideration of the potentially significant costs of taking this case to trial, I believe we have reached such an outcome.

"ABC agents do important work enforcing our alcohol laws and combating underage drinking, and the new policies and procedures implemented after this incident will help ABC effectively fulfill its mission while ensuring the safety of officers and the public. The Commonwealth and I wish Ms. Daly the very best in all of her future endeavors."