A2 faced a legal challenge in Australia from Lion over the science behind health-related claims about the milk.
A2 had taken Lion to court over its milk brand's use of A2 protein claims, seeking an injunction and damages.
Last month a2 said the court hearing in the Australian Federal Court had been vacated from November until the New Year.
"A settlement has been reached in respect of the legal dispute," a2 said in a statement to the stock exchange today.
"The parties have mutually agreed not to proceed with their cases against each other.”
The terms of the settlement were confidential.
A2 said the parties were very satisfied with the outcome and would remain focused on building and maintaining the strength of their individual brands.
A2 shares last traded at $8.08 and were the best performing stock on the benchmark S&P/NZX 50 Index this year, having gained 279%.– BusinessDesk
