Simorangkir sued the singer, accusing her of making false statements about having a criminal past in a sequence of Twitter posts.
The two met in February of 2009 to discuss custom clothing. Simorangkir's lawsuit claimed Love became angry with her after she completed five outfits for the singer and sent her a bill.
"Personally I think $430,000 is an appropriate way to say she's sorry," Simorangkir's attorney, Bryan J. Freedman, said in a statement.
The Boudoir Queen designer's lawsuit doesn't say how much she was initially seeking from Love, but it claims that Love's postings damaged Simorangkir's business relationship with several clients. Love's attorney, Michael Niborski, disagreed in a December filing.
"She simply did not suffer any financial harm due to any alleged actions undertaken by Ms. Love — in fact, her relationship with Ms. Love greatly enhanced her business image and profits," Niborski said.
Before the settlement was reached, the case had been scheduled to go to trial in February. It was expected to be the first trial in which a jury decided whether a celebrity's Twitter posts could be considered libel.