Verne Troyer drops lawsuit over sex tape

Troyer also abandoned his suit against the gossip site www.TMZ.com, which had posted clips of the video.

According to terms of the settlement filed in federal court, broker Kevin Blatt and distributor SugarDVD are barred from selling the video without permission from Troyer and his ex-girlfriend, Ranae Shrider.

McPherson said Troyer wanted the video to remain private and would never agree to a sale.

Blatt has said that Shrider approached him to sell the video but that he declined because Troyer did not consent.

Attorneys for Shrider and SugarDVD did not return calls seeking comment.

-- Harriet Ryan

LOS ANGELES

Spears, Federline OK custody deal

Pop star Britney Spears and ex-husband Kevin Federline have agreed on a custody arrangement for their two sons, probably averting a family court trial set for next month, an attorney for Federline said Friday.

A court spokesman confirmed that a resolution of the long custody case was in the works but that Superior Court Commissioner Scott Gordon has not signed off on it.

After a closed-door meeting Friday with the pop star's attorney and Gordon, Federline's attorney, Mark Vincent Kaplan, declined to discuss terms of the deal but said it would be finalized by the court "in the very near future."

Kaplan told OK magazine the deal gave Federline full legal and physical custody of Sean Preston and Jayden James while continuing visitation rights for Spears.

Spears and Federline did not attend the hearing.

Federline gained custody of the children in October after Spears exhibited erratic behavior. She was hospitalized for psychiatric problems in January. Spears is allowed monitored visitation with her sons.

Her attorney, Laura Wasser, said Friday that Spears was "doing well."

-- Harriet Ryan

HOLLYWOOD

Ex-Guns N' Roses drummer arrested

Former Guns N' Roses drummer Steven Adler was arrested Friday morning on suspicion of drug possession.

Adler, 43, was arrested about 4 a.m. in the 2200 block of Canyon Drive, where a man reportedly was refusing to leave and creating a disturbance, said Los Angeles Police Officer April Harding.