The lawsuit between two different parts of the Andretti business empire has been called off, after Michael Andretti agreed to sell his stake in Andretti Sports Marketing to the two minority owners John Lopes and Starke Taylor who had initiated the legal action at the end of July.

The lawsuit had the potential to be not just embarrassing but highly damaging to Andretti Autosport, as it alleged that the race team was "insolvent and in imminent danger of insolvency and cannot pay it debts."

Michael Andretti had responded to the lawsuit with a strongly worded statement calling the action "disingenuous and self-serving" and that the allegations of insolvency would "not be supported by the evidence and we will aggressively respond with the truth."

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A week after news of the lawsuit surfaced came confirmation that an agreement had been reached whereby Andretti will sell his 60 per cent stake to Lopes and Taylor and that the company will be renamed.

The settlement came after a meeting Tuesday with mediator John R Van Winkle. No additional details of the settlement were given in the short release from the Andretti organisation which said that the terms would remain confidential.

Lopes and Taylor have no ownership investment in the race team.

Andretti Sports Marketing has been the promoter of this year's Verizon IndyCar Series events at New Orleans, and Milwaukee and had previously been involved with the Grand Prix of Baltimore. The company was also the promoter of the Formula E round at Miami earlier this year.

The company recently filed suit against NOLA Motorsports Park over the alleged unpaid amount of $800,000 for organising and promoting the inaugural IndyCar event there in March.

As well as being president of Andretti Sports Marketing, Lopes has also been helping race driver Simona de Silvestro after her split with her longtime manager in 2014. The Swiss driver has had three outings with Andretti in IndyCar this year including the Indianapolis 500, as well as the Miami Formula E event.