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The American Civil Liberties Union and University of California San Diego have reached a settlement in a lawsuit filed on behalf of a satircal student-run newspaper, which alleged that its funding was cut off following the publication of a controversial article in violation of the First Amendment.

The case involves The Koala and a November 2015 article it published satirizing “safe spaces” and “trigger warnings,” leading UCSD’s student government to disqualify student newspapers from eligibility for campus activity funds.

At the time, UCSD issued a statement calling the paper...