It means the plaintiff LK withdraws her case and claim regarding the defendant SGF and only that defendant.
A settlement could be any mutually agreed upon dollar amount and maybe action. An example would be Def SGF shall pay to plaintiff Kanarek within 30 days of the date of this stipulation the sum of $275,000. Both parties agree that neither shall discuss the other either personally, in the press, on TV or on social media. Failure to comply shall result in a motion to renew the case for a violation of the stipulation of settlement.
The money is paid to her attorneys and they distribute the balance after taking their cut, usually one third.