Charles' lawsuit had claimed Ed's Lobster Bar copied elements that included the white marble bar, the gray paint on the wainscoting and the chairs and bar stools with their wheat-straw backs.
The Pearl Oyster Bar is in the West Village; Ed's Lobster Bar is in SoHo. McFarland once served as Charles' sous-chef.
Both sides in the case have agreed to keep the details of the settlement confidential.
