PolyGram settled a lawsuit Thursday with Baltimore R&B act Dru Hill--just two days after the case went to trial in New York Superior Court.
The young quartet sued PolyGram's Island Records division four months ago, seeking to break their contract because of an "invidious terrorist campaign" of "violent and coercive" acts orchestrated against the group by Island and its agents.
Dru Hill's lawsuit stemmed from a May 18 altercation at an Atlanta nightclub involving Hiriam Hicks, president of Island's black music division, and Dru Hill manager Keith Ingram and attorney Londell McMillan.
According to the suit, Hicks attacked Ingram with a pool stick, and Hicks' brother Joshua struck and kicked Ingram and McMillan in front of the group. Police have never filed charges against Hiriam or Joshua Hicks.
Dru Hill's civil suit, which sought $55 million in damages from PolyGram, had been consolidated with two later suits against Island filed by Ingram and Dru Hill's production company, University Entertainment.
The terms of the settlement for the consolidated lawsuit are confidential, but sources say Dru Hill and University will receive a multimillion-dollar advance and an upgraded royalty rate.