A US lawyer wrongfully arrested over the Madrid train bombings in 2004 has settled part of his lawsuit against the US government for $2m (£1.03m).
Brandon Mayfield was held for two weeks when the FBI linked him to fingerprints found in Spain - but later said it was wrong and apologised.
But the convert to Islam still insists he was targeted because he is a Muslim.
The Justice Department has rejected the charge, saying Mr Mayfield's faith was not the reason for the arrest.
In the settlement, the government admitted it "performed covert physical searches of the Mayfield home and law office, and it also conducted electronic surveillance targeting Mr Mayfield", Elden Rosenthal, Mr Mayfield's attorney, said in a statement.
He said the government once again apologised to his client.
The Justice Department said earlier he was held "because fingerprint examiners believed his print to match the Spanish print".
He was arrested on a material witness warrant and did not have the same rights as those charged with criminal offences.
On Wednesday, Mr Rosenthal also said the settlement allowed Mr Mayfield to continue pursuing his challenge of the constitutionality of the sweeping post-9/11 anti-terror law known as the Patriot Act.
Mr Mayfield had said it allowed law enforcement officials to tap his phone in violation of the US constitution.
The Madrid attacks on 11 March 2004 killed 191 and injured hundreds of people.
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