08/23/2007 at 08:00 AM EDT
Courtroom veteran Paris Hilton
has settled a potentially damaging $10 million defamation lawsuit.
An "amicable resolution" was reached between the hotel heiress and actress Zeta Graff in anticipation of jury selection in a trial that was due to begin Monday, the Associated Press reports.
Graff, who for two years reportedly dated Greek shipping heir Paris Latsis (Hilton's former fiancé circa 2005
), contended in her suit that Hilton spread "vicious lies" about her to the media – specifically, to the New York Post
The paper reported on July 2, 2005, that Graff – who had a small role in Luc Besson's 1997 film The Fifth Element
– went "berserk" in a London nightclub, tried to strangle Hilton and attempted to steal her diamond necklace.
Contending that the report strayed from the truth, Graff also allegedly said that Hilton said "I'm going to destroy you" after trying to have her (Graff) ejected from the club, according to court papers.
Hilton, whose relationship with the shipping heir subsequently hit the rocks
, denied that she was the hidden hand behind the report.
But, the AP reports, former Hilton publicist Rob Shuter stated in a deposition that his client asked him to help plant the story.
Details of the settlement are to remain confidential, according to a statement released by Graff's attorney, Bruce Broillet.
Lawyers for both sides declined further comment.