The lawsuit filed by one of Deen's former employees, Lisa Jackson, was dismissed on Monday "with prejudice," meaning it cannot be filed again.
The deal requires both parties pay their own court costs and attorney fees. However, it was not immediately clear whether there was a settlement.
The lawsuit accused Deen and her brother, Earl W "Bubba" Hiers, of racial and sexual discrimination, as well as acts of violence. Although a judge dismissed Jackson's allegation of racial discrimination earlier this month, the damage was already done.
After admitting to using racial slurs during a deposition for the case in May, Deen's food empire came crashing down a month later when the deposition was leaked to the media. Deen was then dropped by Food Network, and several other companies, including Target, Walmart and Home Depot, severed all ties. She has since dropped her legal team and agent and hired a Washington D.C. crisis firm.
After news first broke last week that the now-famous lawsuit was being dismissed, Deen released a statement acknowledging her recent tough times but also looking forward to the future."While this has been a difficult time for both my family and myself, I am pleased that the judge dismissed the race claims, and I am looking forward to getting this behind me, now that the remaining claims have been resolved," she said at the time.