Vivid Entertainment Group says socialite Kim Kardashian has dropped a lawsuit that she lodged against the company after release of “Kim Kardashian Superstar”, a sex video she made three years ago with her then boyfriend, R&B artist Ray J.

“We are pleased that Kim has dropped her legal action against us,” said Steven Hirsch, co-chairman of Vivid Entertainment. “We met with her several times and finally reached a financial arrangement that we both feel is fair.”

“We’ve always known we had the legal right to distribute this video which became an instant best-seller and we’ve always want to work something out with Kim so she could share in the profits,” added Mr. Hirsch.

Ms. Kardashian, daughter of O.J. Simpson lawyer Robert Kardashian and a close friend of Paris Hilton, claimed she had not authorized release of the video, for which Vivid had paid an unidentified third party $1-million. As part of her commitment to drop the suit, Ms. Kardashian agreed to a lump sum financial settlement for the sale of the DVDs. (Source: PR-Inside)