The settlement ends the dispute between Davis and the grandson of E.J. McGah, a former partner of the team, the Oakland Tribune reports.
The settlement was reached only a week after the team responded with its own lawsuit against Sherratt Reicher, whose status as a limited partner was bequeathed by McGah, the report said.
"I will confirm that we have settled the matter and that we are very satisfied," Raiders Chief Executive Officer Amy Trask said.
The dispute began in 2003, when Reicher sued Davis, saying the 75-year-old owner had mismanaged team finances. The suit never went to trial. The Raiders argued that while Reicher still had some ownership of the team, he was not a limited partner and therefore could not be involved in decisions or have access to business records.
The Raiders' lawsuit accused Reicher of trying to abuse the team's finances by demanding various luxuries when the team made it to the Super Bowl in 2003.