Los Angeles County agreed to pay $5 million to the top executive of an election software company who had been arrested and charged in 2022 with mishandling voter data in a case that prosecutors dropped a few weeks later, the executive’s lawyer said this week.

The payment, which settles a lawsuit filed last year, is yet another twist for Eugene Yu, 66, the co-founder of the software company Konnech.

Mr. Yu and his company faced a barrage of right-wing conspiracy theories after the 2020 election including that Konnech, which is based in Michigan, had stored election data in China. Mr. Yu repeatedly denied sending data to China, including in an article by The New York Times about the false claims as a part of coverage of misinformation and elections.

Los Angeles prosecutors later arrested Mr. Yu, raiding his home and workplace. They charged him with embezzling public money by storing data on poll workers in China, a violation of its contract with the county, along with conspiracy to commit a crime. Right-wing media pointed to the arrest as evidence that claims of widespread election interference were true.