Paris Hilton, Zeta Graff Settle Lawsuit

Paris Hilton departs CNN studios after taping a one-hour segment of "Larry King Live" 27 June 2009 in Hollywood, California. Hilton said she was determined to prove critics wrong who doubted her claims to be a changed woman following her three-week spell in jail, celebrity magazine People reported 27 June 2007. AFP PHOTO / Robyn BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
Diamond heiress Zeta Graff took Paris Hilton to court, claiming she spread "vicious lies" about her to the media in 2005. On Wednesday, the women settled the lawsuit, just days before jury selection was to begin.

Both sides reached an "amicable resolution," but the details were kept confidential, according to a statement released by Graff's attorney Bruce Broillet.

"Both parties are glad that the matter could be resolved without the time and expense of a trial," the statement read. Trial had been scheduled to begin Monday.

Dueling Heiresses
Attorneys for both Graff and Hilton declined further comment. Hilton spokesman Elliot Mintz did not return telephone calls Wednesday.

Photos: Paris Hilton Is Free
Graff filed a $10 million suit against Hilton in 2005, claiming the hotel heiress spread "vicious lies" about her to the New York Post.

The paper reported that Graff — who once dated Hilton's then-fiancé, Greek shipping heir Paris Latsis — went "berserk" at a nightclub, tried to strangle Hilton and attempted to steal her diamond necklace.

Graff denied the report and claims Hilton said, "I'm going to destroy you" after trying to oust her from the club, according to the suit.

Hilton denied that she was behind the report.

But former publicist Rob Shuter said in a deposition that Hilton asked him to help plant the story and that he gave the paper comments attributed to himself, Hilton and anonymous sources that were dictated by Hilton.