The Hole rocker was sued by fashion designer Dawn Simorangkir over comments she made about her via social networking sites twitter and MySpace, claiming the singer had ruined her business.
Courtney, 46, claims her comments were only her opinion and should therefore be protected by US law, but the pair have instead reached a settlement out of court.
Comments made by the 'Nobody's Daughter' singer reportedly included accusing the designer of, among other things, pushing drugs, prostitution and having a history of assault and battery.
One post read: ''She has received a vast amount of money from me over $40,000 dollars and I do not make people famous and get raped too! (sic)"
Courtney has launched many social media rants - often using her own bizarre grammar and including long streams of conscious, punctuated with foul language - including missives aimed at her own daughter, Frances Bean, and friend and musical collaborator Billy Corgan of Smashing Pumpkins.
Shortly after the case was brought against her, Courtney vowed to cut herself off from all social internet sites, writing on twitter: "The end. Am shutting down all social media tomorrow first thing, from here on in i have NO Comment, includes Facebook.(sic)"
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