Interscope Records and Trauma Entertainment decided to terminate their partnership in an out-of-court agreement Thursday, ending a four-month-long legal dispute, according to the L.A. Times. Trauma originally filed a $100 million lawsuit against Interscope, charging the company with fraud, extortion and the unfulfillment of a two-year promise to assign ska-punkers No Doubt to Trauma's roster. Sources told the Times that the negotiations will assure Trauma owners an extra $3 million. However, No Doubt will remain with Interscope, along with distribution rights to the next album by Trauma's second biggest act, Bush. Trauma owners Rob Kahane and Paul Palmer became disenchanted with Interscope in February, when their request for an early buyout from Interscope was rejected. Kahane, who once managed pop artist George Michael, is not new to this kind of agreement, since this is the second time he has split from a company in three years. Kahane was released from Disney's Hollywood Records in 1994. The settlement turns Kahane and Palmer's successful Trauma to the open market, while Interscope and No Doubt are now engaged in a six-record contract. No Doubt's album Tragic Kingdom has sold more than 10 million copies, and together Bush's two records have sold about 11 million. -- ATN staff report [Fri., Aug. 29, 1997, 5 p.m. PST]