Sean "P. Diddy" Combs has settled a $3m
(£1.6m) court case filed by his former driver after an incident in 1999.
Rap star Sean Combs had been due to testify in court
Wardell Fenderson drove Mr Combs and his then-girlfriend Jennifer Lopez away from a New York nightclub where three people had been wounded in a shooting.
Mr Fenderson said he was traumatised by having guns in the car and being ordered to ignore police orders to stop, for which he was arrested.
Lawyers for both sides refused to reveal the settlement terms.
Mr Combs and ex-partner Jennifer Lopez had both been due to testify at the New York trial.
Mr Fenderson, who testified over three days, alleged false imprisonment and assault on the night of the incident on 27 December, 1999.
However, he was forced to admit in court that he could have got out of the car of his own free will. Nor was there any suggestion of assault.
He also testified that he became reclusive and a heavy drinker following the incident.
After the shooting in December 1999, Mr Combs, Lopez, Mr Fenderson and Combs' bodyguard Anthony "Wolf" Jones were arrested and taken into custody.
In a separate incident, Jamaal "Shyne" Barrow, a rising rap star and protege of Mr Combs, was also arrested as he fled the nightclub with a gun.
Charges against Mr Fenderson were subsequently dropped. He later testified at trial against his former employer, as well as Mr Jones and Mr Barrow.
Mr Combs and Mr Jones were acquitted of gun possession charges in March 2001.
The rap star was also acquitted of bribery charges which alleged he tried to bribe Mr Fenderson to take the blame.
No charges were filed against Jennifer Lopez.
Jamal Barrow, was found guilty of first-degree assault and reckless endangerment.
He was sentenced to 10 years in jail.