The details of the agreement were not public, but were announced via a ruling by U.S. District Judge Mary Kay Vyskocil of the Southern District of New York.
The order of dismissal is without prejudice in the event the parties are unable to memorialize the agreement, but they must inform the court before Nov. 21 or the case will be dismissed with prejudice, she ruled.
California-based Canoo is represented by Aaron Marks of Kirkland & Ellis, while defendant DD Global Holdings is represented by Susan Saltzstein and Jeffrey Geier of Skadden, Arps, Slate, Meagher & Flom.
Canoo filed suit in 2022 alleging that DD Global, one of its largest shareholders, must disgorge the $61 million in alleged profits accrued from the sale of some 35 million Canoo shares in 2021.
The complaint alleged that DD Global violated securities law when it sold the shares below trading price and then acquired an interest in 10.5 million shares four months later.
Counsel for parties failed to immediately returned requests for comment.