As part of the settlement, Blatt and SugarDVD agreed not to distribute the tape featuring Troyer and then-girlfriend Ranae Shrider without Troyer's permission, which he has no intention of granting his attorneys told various news outlets.
Troyer filed the suit last month after a 25-second clip of the 50-minute tape, which was filmed over Easter weekend 2007 at a Beverly Hills hotel, were posted on the celebrity news website TMZ.com. Initially, a judge ordered the clip taken down, but reversed that order after Shrider signed documents stating she had given TMZ permission to post the clip.
SugarDVD was named in the suit because the company posted a statement on its website offering $100,000 for the tape, provided Shrider and Troyer approved. The statement was later removed from the site, and company officials offered no comment.
Blatt was named after he was revealed in various media reports as a person trying to shop the tape around. Blatt told AVN Online he dropped the project after he learned Troyer was not on board, and did not ever have possession of the tape.
Edwin McPherson, one of Troyer's attorneys, told news reporters last week he planned to amend the lawsuit today to prevent Shrider from releasing the tape.
Troyer, who is best-known for his role as Mini-Me in two of the Austin Powers movies, has been seeking the return of the tape.
McPherson said other people or companies may also be sued to prevent the tape from being released.