"I am pleased to have reached a settlement with AMI on my own terms, which restores to me the rights to my life story and frees me from this contract that I was misled into signing almost two years ago", McDougal said in a statement to HuffPost.
McDougal filed the lawsuit against the company, which publishes the National Enquirer, for reportedly paying her $150,000 to buy exclusive rights to her story about the affair but never publishing it.
Karen McDougal attends Playboy's Super Saturday Night Party at Sagamore Hotel on February 6, 2010 in Miami Beach, Fla.
In the interview, the former Playmate claimed she saw Trump "many dozens of times" in a 10-month period beginning in 2006, and that they had sex during the time span. She also said Trump's attorney, Michael Cohen, had inappropriately intervened in the deal.
The settlement agreement states that American Media is entitled to up to $75,000 of any profits McDougal makes from her story about the alleged affair.
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For more than a decade, McDougal says she did not hear from Trump. "She's claiming she was led to believe the story would be published", said Russ Richelsoph, an attorney for Davis Miles Law Firm in Tempe not directly involved in this case.
McDougal's attorney, Peter Stris, confirmed the settlement in a statement provided to USA TODAY. He specified that they got what they were fighting for and that her client does not owe anything to A.M.I. anymore.
The former model, meanwhile, told the Times her "wild ride" was over and said she has no plans to sell the rights to her story to any other buyers.
McDougal then spoke out herself to CNN last month, just days after filing her lawsuit against America Media.
McDougal later realized she could face a financial penalty for speaking to the media about her story. It's also been reported that documents related to the agreement between McDougal and AMI were among those seized by the F.B.I.in its recent execution of search warrants on Cohen's office, home, and hotel room and that the AMI agreement is being investigated by the Federal Election Commission as a potentially illegal unreported "in-kind" contribution to the Trump campaign.
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This combination of pictures shows adult film actress/director Stormy Daniels (left) and Karen McDougal.
AMI added an amendment to the contract after the election to allow McDougal to respond to legitimate news inquiries.
The settlement ends a lawsuit brought by McDougal against the National Enquirer publisher on March 20, which AMI had petitioned an L.A. County Superior Court to dismiss on April 2.
That's in addition to whatever may come up in the FBI's investigation of Michael Cohen.
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