NEW YORK — Beyonce has settled a New York City lawsuit that said she didn't play fair in a deal for a video game structured around her.

Court records show the case was closed Friday after the Grammy Award-winning singer and Gate Five LLC agreed to drop it.

A lawyer for Gate Five says the terms are confidential. A lawyer for Beyonce hasn't returned a call seeking comment.

Gate Five had said Beyonce made a lucrative deal for a game called "Starpower: Beyonce," then demanded a new agreement and abandoned the project. The company says it lost its nearly $7 million investment and 70 people lost their jobs.

Beyonce's lawyers had said she was within her rights to get out of the deal because Gate Five didn't have needed financing.