Call it a coat checkmate.
"It was settled about a week ago, and we filed the stipulation this week," Markova's attorney, Merrill Cohen, tells E! News.
"I cannot tell you any terms, because they are confidential...but I can tell you we are happy with the settlement and we believe Lohan is also—otherwise she wouldn't have agreed to the settlement."
The student claimed her coat was swiped from the 1Oak nightcub in January 2008, while she was attending a private party there. Weeks later, paparazzi photos showed Lohan wearing the MIA mink, and the fur began to fly.
The mink was returned to Markova in February, after Cohen notified Lohan's lawyer, Blair Berk.
But Markova decided to take legal action anyway, suing Lohan in May for wrongful possession and asking for unspecified damages for the unauthorized use of the pilfered coat.
Berk did not immediately respond to calls seeking comment.