Lindsay Lohan has been awarded 150,000 dollars (£81,000) in damages from her former clothing line 6126.
The 27-year-old actress sued the leggings company for 1.1 million ollars (£650,000) claiming she had been short changed in royalties after lending her name to the line.
But the company hit back saying Lindsay had failed to adequately promote the leggings.
Now court documents obtained by RadarOnline has shown an agreement has been reached following a settlement conference.
The documents reportedly state: "Agreement is reached for resolution of all claims among parties. Payment to be made by Defendants to Plaintiff in the sum of 150,000 dollars. Documentation to be completed and stipulation for dismissal filed within thirty days."
Lindsay had told the court she'd been too distressed after suffering a miscarriage and the burdens of supposed sobriety to respond to the lawsuit.
In a written statement she said: "When I was in rehab, [my lawyer] was unable to contact me to discuss the case.
"After I completed my 90 day programme I moved back to New York.
"I have been overwhelmed since leaving rehab and dealing with my sobriety and a miscarriage."
Lindsay previously revealed she had suffered a miscarriage on her reality TV show on Oprah's OWN Network.