London & Co., a management firm, sued the Hole lead singer two years ago alleging that she failed to share the profits from a deal in which Love sold a part of Nirvana's published catalog for almost $20 million, reports the New York Daily News.
Attorneys for Love and London & Co. told a judge that the sides had settled and the case was then dismissed.
Love has controlled the rights to the groundbreaking band's material since Cobain committed suicide in 1994.
James Janowitz, Love's lawyer, confirmed the settlement but revealed no details.
Nirvana's 1991 album, "Nevermind," is largely credited with bringing both grunge and alternative rock to the masses. Lead single "Smells Like Teen Spirit" has become an anthem and the record has sold over 10 million copies. "Rolling Stone" and "Time" have both called it one of the best albums of all time.