DJ AM, whose real name is Adam Goldstein, died in August in New York of an accidental overdose. Attorneys later amended the lawsuit to include a wrongful death claim.
He had been seeking $20 million in damages, but a jury would have had to approve that amount.
Terms of the settlement were not revealed and Goldstein's attorney, Brian Panish, did not immediately return a call seeking comment. The resolution was first reported Thursday by celebrity Web site TMZ.