According to documents obtained by Rolling Stone, a settlement was reached Dec. 10 between both parties. The agreement also included Petty's longtime manager, Anthony Dimitriades, the magazine reported.
Details of the settlement were not revealed, and none of the parties were available for comment.
The legal dispute began in April, when Petty's widow and his daughters filed court petitions accusing each other of attempting to control Petty's assets, Billboard reported. The sisters filed the $5 million lawsuit in May, accusing Dana Petty of "self-dealing, theft and gross mismanagement of the singer's estate, the magazine reported.
Dana Petty accused her stepdaughters of interfering in and delaying several posthumous Petty albums, including the 2018 boxed set, "An American Treasure," and a 2019 greatest hits collection, Rolling Stone reported. The legal wrangling has also impacted the release of the 25th anniversary reissue of Petty's 1994 album, "Wildflowers."
Petty died of a drug overdose on Oct. 2, 2017. He was 66.