Toys "R" Us lost $41 million, or 19 cents a share, in the quarter, even though sales increased 3.6 percent.
Toys "R" Us tried to impose similar discipline, but failed.
Toys "R" Us closed its store in early 2006 as part of the chain's reorganization plan.
Toys "R" Us also said the settlement did not change its position on the case.
Toys "R" Us would also increase to the mid-$30's from $21.
Toys "R" Us was the first such store, two decades ago.
Toys "R" Us has reached the top of some fairly big hills this fall.
Toys "R" Us will not give specific sales figures until the end of the season.
Toys "R" Us won the right to build, but the city is appealing.
Toys "R" Us does not discuss sales of individual products.