TMZ reports Hilton and La Bonita were suing each other after both parties failed to come to an agreement when a deal in which Hilton was supposed to design a swimwear line went bad.
La Bonita sued Hilton first for over $200,000 alleging the heiress had failed to honor her 5-year contract with them. In turn, Hilton sued the lingerie company for $1.5 million.
But now, both parties have decided to drop their lawsuits and have agreed on another lingerie/swimwear deal.
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