An upstate New York woman who sued the U.S. government and a Drug Enforcement Administration agent for impersonating her on Facebook without permission has settled her case for $134,000.

Sondra Arquiett filed suit in 2013 after she discovered that a DEA agent had concocted a Facebook profile in her name using images stored on her cellphone. Authorities had earlier taken possession of her phone after arresting her in 2010 for her role in a cocaine drug ring. A DEA agent then created the "undercover" Facebook profile...