NEW YORK (TheStreet) -- Martha Stewart Living Omnimedia, Inc. (MSO) was climbing Thursday as the home products maker said it settled a lawsuit with Macy's, Inc. (M) over their products deal with J.C. Penney Co. (JCP).
Neither side disclosed details of the settlement, saying only that they were glad "to put this matter behind us." Neither Martha Stewart or Macy's expect the settlement to impact earnings.
Martha Stewart was surging 11% to $4.66 while Macy's was slipping 0.1% to $53.34. J.C. Penney was losing 2.8% to $8.89.
Last year, Macy's filed a lawsuit against both Martha Stewart and J.C. Penney over a partnership allowing J.C. Penney to sell Martha Stewart-branded products. Cincinnati-based Macy's claimed it reached an exclusive agreement with Stewart a few years ago.
Earlier this year, a New York state judge ruled that J.C. Penney could sell products made by Stewart's company, but not those with her brand on it. Macy's made plans to appeal that ruling.
In October, Stewart and J.C. Penney revised their product agreement, allowing J.C. Penney to continue to sell Martha Stewart products, including rugs, window treatments and seasonal holiday items. As a result of that new deal, Stewart will receive an undisclosed amount of design fees and royalty payments, as well as 11 million shares of common stock that J.C. Penney owns in Stewart's company.
J.C. Penney has also agreed to pull its representation off of Martha Stewart's board.
Plano, Texas-based J.C. Penney acquired its 11 million shares in Martha Stewart, which represents a nearly 16% stake, in December 2011, in exchange for a $38.5 million cash infusion.