A high school student's free speech battle against a North Carolina school board took an important step towards closure after a court hearing Tuesday.Christian McGhee, 17, was suspended last year after school officials deemed he made a "racially insensitive" comment about "illegal aliens" in class. The suspension led to a year-long legal battle with the Davidson County Board of Education.Last month, a proposed settlement was reportedly reached between McGhees parents and the school board. On Tuesday, Judge Thomas DavidSchroeder of the U.S. District Court for the Middle District of North Carolina ruled that the proposed settlement was "fair, reasonable and in the best interest of [Christian]," according to a press release released Wednesday by the student's legal representatives at the Liberty Justice Center.The school has reportedly agreed to remove the racial bias incident from McGhee's record, issue a public apology, and acknowledge that a former board member responded inappropriately to the incident. Additional terms of the agreement are sealed, but the New York Post reported that the family is also slated to receive a $20,000 payment.SUPREME COURT DECLINES TO REVIEW FREE SPEECH CASE INVOLVING STUDENT WHO WORE 'ONLY TWO GENDERS' SHIRTBecause the student is a minor, a court hearing was required to finalize the settlement, according to the legal group.The teen received a 3-day suspension in the spring of 2024 after asking his teacher if a conversation in class was centered around "spaceship aliens" or "illegal aliens who need green cards" after he returned to the classroom from the restroom.A Latino student present in the class reportedly "joked" that he was going to "kick Christians a--," leading the teacher to escalate the situation to the assistant principal.McGhee's mother, Leah, who was behind the legal push against the district, told "Fox & Friends" last year that their family tried "for weeks" to resolve the matter privately but were forced to file a lawsuit after getting no response from the school board.NORTH CAROLINA SCHOOL DISTRICT TO ISSUE APOLOGY, PAY $20K TO STUDENT SUSPENDED OVER 'ILLEGAL ALIEN' COMMENTThe lawsuit accused the school board of violating McGhee's constitutionally-protected rights to free speech and due process."The courts approval represents a critical step towards finally vindicating Christians constitutional rights and clearing his record of false allegations," Liberty Justice Center Senior Counsel Dean McGee said of this week's ruling.McGhee's parents said they were grateful and celebrating the legal win."We are grateful for the Liberty Justice Centers tireless efforts to bring justice to our son, and to the members of the current school board who chose to work with us to help resolve the case," Leah and Chad McGhee said. "Together with the help of our community, we have proved that constitutional rights do not end at schoolhouse doors. We are celebrating this victory and hope it encourages other families to stand firm in the face of adversity."The Davidson County School Board did not immediately return a request for comment.Fox News' Taylor Penley contributed to this report.