The suit was filed as the result of a sex videotape featuring Hogan, real name Terry Bollea, and the former wife of Bubba, real name Todd Alan Clem, E! Online said.
Terms of the settlement were not announced but Clem read an apology to Hogan on his radio show Monday, stating he is convinced Hogan was unaware he was being videotaped, and it is Clem's belief Hogan was not involved in profiting from the tape's release to the public.
David R. Houston, Hogan's attorney, said Bollea "is pleased that Mr. Clem finally stated the truth and apologized for his false statements."
Hogan's lawsuit against Gawker Media, which posted excerpts of the videotape on its website, is still pending, E! Online said.
Notable deaths of 2014 [PHOTOS]