The case, which was scheduled to go to trial in December, dates to 2014, when Corren, running as a Democrat and Progressive, made a failed bid to unseat then-lieutenant governor Phil Scott.
Corren received about $180,000 in public money for his campaign. When accepting public financing in Vermont, candidates agree not to solicit contributions from outside sources.
Sorrell alleged that Corren violated the law when he asked the Democratic Party to email its 19,000-person subscriber list touting his candidacy. Sorrell sued Corren in state court, seeking to have him pay $72,000 in penalties.
The email itself has been valued at $255, the figure Corren will now pay in the settlement.