A Palestinian grocer who sued Sacha Baron Cohen after appearing in his 2009 movie Bruno has settled his lawsuit with the comedian.

Ayman Abu Aita filed a $110 million defamation suit at Washington, D.C.'s Superior Court after a caption in the controversial film described him as "Terrorist group leader, Al Aqsa Martyrs Brigade."

His case later moved to a New York court after he included TV host David Letterman in the suit for airing the clip on his talk show.

Abu Aita claimed to have suffered a "loss of reputation" and death threats after the movie's release, but lawyers for Cohen argued he was protected by free speech.

Nevertheless, the case was settled earlier this week , with a lawyer for Abu Aita telling the New York Post the matter has been resolved "to the mutual satisfaction of all the parties."

The terms of the settlement are confidential.