Advertising mogul Sir Martin Sorrell has accepted a £120,000 offer of compensation to conclude his libel and privacy actions.
Mr Sorrell agreed to payment of the sum from Marco Benatti, Maroc Tinelli and Fullsix Spa after 24 hours of out-of-court negotiations in which the defendants did not admit liability.
The action followed allegations from Mr Sorell and Daniela Weber, who will receive a settlement of £30,000, that they had been the subject of a defamatory internet campaign.
Mr Sorrell and Ms Weber had claimed that they had been dubbed "the mad dwarf" and "the nympho schizo" in a blog, which is also said to have included accusations that the pair were guilty of fraudulent business practices.
The case arose after Ms Weber and Mr Sorrell and Mr Benatti's personal and working relationships deteriorated after Mr Benatti was dismissed from his consultancy as manager of WPP Italy.