Ono, who was married to the Beatles legend from 1969 until his death in 1980, accused the company of profiting off her former husband's likeness without permission.
The drink's label shows a white background behind block lettering that says, "John Lemon," along a description of the drink's flavor.
In advertisements, the company allegedly used lyrics from Beatles songs, such as Let it Be, and one of Lennon's most famous songs, Imagine.
"I think everyone would agree that this is a breach of rights," Murray Chalmers, Ono's publicist, told CNN.
Ono's attorneys claimed damages in the range of about $6,000 per day and $600 for every bottle sold.
A settlement was ultimately reached after the lawsuit was filed for an undisclosed amount.
The Polish drink maker agreed to stop selling the brand in November, and said it will change the name of the drink to "On Lemon."