You will treat your share of the settlement and legal fees "as if" you had made a capital contribution to the LLC. Since you already determined your final gain or loss last year, when you received your final K-1", these expenses essentially become capital losses; short term.
For the portion that you paid related to your partner, you have made a loan to them. The interest is reported just as any other interest and there is no tax implications related to the principal repayment.
Make sure you have a written loan agreement with a stated interest rate to protect yourself.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
