Adrenalina Inc. sued Gomez, saying it made a deal with her that it would create fragrance products using her name and image. The company said it spent more than $2 million on marketing.
Adrenalina said Gomez and her agent ended the relationship with the company and refused to show up for promotional events.
Gomez counter-sued, saying she backed out of the deal because Adrenalina couldn't afford to produce the products, TMZ reported.
Gomez settled with Adrenalina for a six-figure sum, though the specific dollar amount wasn't reported. A second component of the settlement, though, means Gomez could have to shell out more than $1 million to the perfume company, sources familiar with the case told TMZ.
2014: The Year in Music [PHOTOS]