The terms of the settlement were not disclosed in a filing Friday in federal court in Manhattan. The settlement calls for each side to pay its own costs and attorneys' fees.
A judge ruled in June that the lawsuit could go forward. He said a jury could decide whether an ad campaign made it seem that Robert Burck endorsed M&Ms.
In the ads, a blue M&M can be seen strumming a guitar while wearing just underpants, boots and a hat. Burck sports the same get-up while playing guitar for Times Square tourists.
Lawyers for both sides did not immediately return telephone calls.