NEW YORK, July 14 -- Sharon Stone and The House of Harry Winston announced Friday they have settled the actress's $12 million lawsuit against the jeweler. Stone filed the lawsuit after she was ordered to return a $400,000 diamond necklace which the jeweler says was loaned during the promotional tour for her 1993 film, 'Sliver,' but which she claims was given to her as a gift.
The terms of the settlement were not released, but Winston said it includes a donation to the American Foundation for AIDS Research. 'All parties are very pleased that it's been resolved,' said Winston spokesman Tom Baumgartner. Stone initiated the lawsuit after the jeweler demanded she return the valuable necklace. The actress balked, but later returned the bauble. In her lawsuit, Stone claimed breach of contract and defamation, contending that Winston misrepresented himself and saying she never would have used her name to promote the jewels unless she was able to keep them. At the time, the jeweler said in a prepared statement, 'For over 50 years our firm has graciously loaned certain film, television and music stars jewels for special occasions...They wear the jewels, look fabulous and return them. For someone to believe that such a 'loan' is a gift is simply mind boggling. We're hardly in the business of giving away jewelry -- especially half-million dollar necklaces.' Winston has previously loaned jewelry to such stars as Elizabeth Taylor, Michelle Pfeiffer, Katharine Hepburn and Madonna. Through a spokeswoman, the actress declined comment on the settlement.