The township will allow the construction of a mosque in a Liberty Corner neighborhood as part of a settlement agreement signed Tuesday.

The settlement ends two federal religious discrimination lawsuits, one from the Justice Department and the other by the Islamic Society of Basking Ridge, filed against the township after it denied a plan to build the mosque.

The township will have to pay $3.25 million to the society and its legal firm, according to court documents provided by Adeel Mangi of New York City-based Patterson Belknap Webb & Tyler, who represented the society.

The society will receive $1.5 million for damages, with another $1.75 million going toward legal fees.

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