Big Pun's widow sued Fat Joe and music publisher Jelly Jams for breach of contract, alleging that Joe reneged on a deal to split Pun's music profits.  She wants back his royalties, advances and money from using his songs on TV and in movies.

Now one day after lawyers for both sides spent all day in mediation, the Bronx rapper and his co-defendant, Jelly Jams, made a deal with Pun's widow, Liza Rios that will effectively stop it from going to trial.

Lawyers for each side announced the deal Wednesday morning during a status hearing at Manhattan Federal Court. “Your honor, the parties have settled,” Fat Joe’s lawyer Benjamin Stranzl said. The terms of the settlement were confidential, but an expert testified that Fat Joe owed Big Pun at least $2 million.

“We are pleased with the settlement,” Rios’ lawyer Lita Rosario told BOSSIP. “We think it was fair, and we’re pleased.” Stranzl, and Fat Joe’s other lawyer John Cain, refused to comment after the hearing. Lauren Kruger, lawyer for Jelly’s Jams, also declined to comment.