Kat Florence Design sued Parker, arguing that she had agreed to promote a collaborative jewelry line of diamonds and other gems for a fee of $7.5 million but failed to live up to the obligation.
Parker filed a lawsuit of her own, saying payments from the designer were "abruptly and without notice or explanation stopped" in October 2016. She said she was paid about $1.3 million.
Details of the settlement in New York were not disclosed.
"Kat Florence Design and Sarah Jessica Parker are pleased to have resolved their differences," the two said in a joint statement released Tuesday. "Kat's and Jessica's mutual appreciation for one another remains unwavering, and they are excited to resume their partnership."
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