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From Times Staff and Wire Reports

De Laurentiis and Universal Settle: The often-vitriolic court fight between producer Dino De Laurentiis and Universal Pictures has ended in a settlement. Sources familiar with the agreement said it grants Universal preferred negotiation standing to bid on domestic distribution rights for a sequel to the acclaimed film “The Silence of the Lambs.” In exchange, Universal has agreed to pay in full for delivery of the De Laurentiis-produced film “Army of Darkness.” Universal is paying half of the $12.7-million “Army” budget, plus “an additional sum,” according to people familiar with the settlement. De Laurentiis had asserted in deposition testimony that Universal Chairman Thomas Pollock had sought to “blackmail” him into surrendering rights to the “Silence” sequel. Pollock strenuously denied De Laurentiis’ contention, testifying that De Laurentiis had agreed orally to collaborate with Universal on a sequel to the Academy Award-winning film.

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