A sportswear firm run by Newcastle United owner Mike Ashley has halted High Court litigation with Rangers.
Lawyers for Sports Direct told a judge on Wednesday that bosses were discontinuing legal action.
Mr Justice Peter Smith gave his approval at a High Court hearing in London.
Sports Direct had claimed that Rangers' chairman Dave King had breached a confidentiality undertaking relating to a commercial deal. Mr King had disputed the claim.
A trial had been fixed for next week.
Lawyers for Sports Direct told the judge the firm had agreed to pay all lawyers' bills - estimated to total around £400 000 - run up during the litigation.
Mr Justice Smith said the litigation had been "ridiculous".
Mr Justice Smith had torn a strip off Sports Direct at a preliminary hearing earlier last month.
The judge had complained of bosses abusing court processes during the dispute. He had said he wanted to mark his disapproval of Sports Direct's approach.
Sports Direct had claimed that a confidential agreement had been breached, the judge had said.
The firm had initially claimed £200,000 damages, then reduced the damages claim to £50, 000, then said it was not claiming any damages - but wanted the imposition of injunctions, he had added.
Mr Justice Smith had said: "The whole way that the claimants have been conducting themselves ... shows that they have been abusing processes of the court in relation to the damages claim.''
The judge had last month also cleared Mr King of committing contempt of court - following allegations made by Mr Ashley relating to the dispute.
A lawyer representing Rangers said after the hearing that club bosses were "pleased".
Ryan Mowat, a partner at law firm Kingsley Napley, said the claim had been "spurious" and added: "Fortunately, the judge has been alive to the game playing of Sports Direct which has helped expose the case for what it was."
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