Award-winning country duo Sugarland have reached an agreement with former member Kristen Hall who sued them for an estimated $14m (£8.7m) in profits.
Founding member Ms Hall claimed she was owed one-third of the band's profits despite quitting in December 2005.
Ms Hall, who formed the band in 2002, said she made them successful by acting as manager. The band said a profit-sharing agreement was not reached.
A judge in Atlanta confirmed the sides had reached an undisclosed settlement.
Jennifer Nettles and Kristian Bush, of Sugarland - named the Country Music Association's vocal duo of the year last week - had been due to go to trial with Ms Hall on Monday.
Ms Hall sued the pair in 2008 saying she should be given a third of all the group's profits. Her lawyers said her share could be more than $14m (£8.7m).
She said she laid the groundwork for later success by taking on roles including tour organiser and marketing officer and used her own credit card to pay for band expenses.
She says she also "collaborated generously" on debut album Twice the Speed of Life, which sold millions of copies.
In court documents, Ms Nettles and Mr Bush said they were left with debts of $100,000 (£62,000) and that Hall had "no expectation that the parties would ever work together again".
The judge gave the two sides until 13 December to complete the agreement.
Sugarland's last two albums, Love on the Inside and The Incredible Machine, went to number one in the US.