November 21 [11:00 EDT] -- Dru Hill finally managed to reach an amicable settlement with their label, Island Records, in a New York City court room on Wednesday.

In the suit, Dru Hill wanted to terminate their contract with Island, after an Island executive allegedly beat their manger with a pool cue last spring.

And if the suit hadn't been tense enough, former Polygram president, Eric Kronfeld, made it uglier after making racist comments regarding the hiring of African-Americans with criminal records during a deposition.

Polygram (Island's parent company) made a public apology and demoted Kronfeld.

Island's official comment regarding the fiasco was, "During these lawsuits, certain allegations of violence and racism were raised. These allegations were extremely destructive and we've been able to meaningfully focus on them."

There is no word yet on whether any money changed hands during the settlement, though one stipulation is that Dru Hill remain on Island Records. The R&B group are reportedly looking forward to their future there.