CHARLOTTE, N.C.—NASCAR has settled a $225 million lawsuit filed by a former official who said she was subjected to racial discrimination and sexual harassment during her two-plus years working for the stock-car organization, The Associated Press has learned.

The suit was settled during a mediation held in New York between Mauricia Grant and NASCAR. Settlement terms were confidential.

“We’re glad to have the case settled on mutually acceptable terms,” NASCAR spokesman Ramsey Poston said Thursday. “NASCAR remains dedicated to maintaining a professional work environment fo...

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