Diane Lane has settled a multimillion-dollar lawsuit against a production company, both her agent and the company chairman said.

The 39-year-old actress sued Intermedia in Los Angeles Superior Court in July 2003, alleging the company had agreed to pay her $3.5 million to star in "Me Again" in a so-called "pay or play" agreement. Such a deal specifies that the actor or actress gets paid whether the movie is made or not.

The lawsuit alleged Intermedia negotiated a buyout with Lane's would-be co-star, Bruce Willis, when its funding ran out but never paid Lane the remaining $2.7 million she was owed.

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