Modern rock outfit Garbage and a number of U.K. labels have reached an out-of-court settlement in a lawsuit involving the recording status of lead singer Shirley Manson, Billboard Bulletin reports.

Modern rock outfit Garbage and a number of U.K. labels have reached an out-of-court settlement in a lawsuit involving the recording status of lead singer Shirley Manson, Billboard Bulletin reports. While terms of the deal, approved Friday by a London High Court judge, remain undisclosed, it apparently clears a path for the tentative September release of Garbage's third album, "Beautiful Garbage," by Mushroom Records in the territory.

Garbage had been at the center of a dispute that pitted the U.S. joint venture of MCA and Radioactive against Mushroom over the U.K. release of the band's second album, "Version 2.0." It was alleged that Manson breached the terms of her recording agreement with Radioactive -- which had exclusive worldwide rights to record and sell her performances -- by recording the album with the band. The U.K. affiliate of Island Universal also joined in the claim, as it distributes Radioactive releases locally.

The agreement also allows Manson to make additional recordings with Garbage. The band filed suit earlier this year against Universal Music Group (UMG), arguing that its contract with the now-defunct Almo Sounds label was voided once UMG acquired the imprint. It is not clear what label will release "Beautiful Garbage" in North America.