A 2021 federal lawsuit charging that the Honolulu Liquor Commission engaged in an “ongoing campaign” of “highly discriminatory anti-gay harassment” against nightclub Scarlet Honolulu and the Gay Island Guide has been tentatively settled with terms favorable to the businesses. The U.S. District Court will monitor the agreement, under proposed terms, and the city will pay $670,000 to claimants. The Honolulu City Council must approve the settlement to make it final.

The liquor commission’s administrator, Sal Petilos, says the agency is reorganizing, has increased training and has committed to “randomization” of its routine inspections.