Cole, 30, was reportedly axed during the singing competition's audition phase because producers were worried that American viewers would not understand her thick Newcastle accent. She only appeared in one episode, and was subsequently replaced by Nicole Scherzinger, who was originally supposed to co-host the show.
Cole sued producers Blue Orbit for $2.3 million for loss of earnings earlier this year. According to legal documents filed in Los Angeles Superior Court, she was signed on to do two seasons of the show and promised a salary of $1.8 million for Season 1 and $2 million for Season 2. She was also not paid expenses for her wardrobe allowance, her stylist, living arrangements in Los Angeles and a monthly living allowance. In her suit, Cole asked for the money, plus interest, legal fees and "further relief as the court may deem just and appropriate."
The case has been settled out of court and producers will pay her an undisclosed amount. "Cheryl's dispute with Blue Orbit has been resolved amicably," her spokesman told the BBC.
Cole has been busy in the studio working on her fourth studio album, which is due out next year. Simon Cowell, the producer and judge behind The X Factor, has hinted he may invite her back to the original UK X Factor, "Cheryl and I patched up our differences a long time ago," he said in a recent interview. "I saw her recently, we speak a lot on the phone and text each other, and I think both of us would like the idea of working together again."