The Shawshank Redemption star, who broke his arm and shoulder in the crash, was facing a court date with his passenger Demaris Meyer next year (10), but he has chosen to settle instead.
Meyer filed a lawsuit in February (09), alleging the actor had been drinking alcohol in the hours leading up to the crash, which happened in Mississippi last August (08).
She claimed she sustained a broken wrist, a torn labrum in her shoulder and various other bruises and lacerations.
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Meyer, who owned the crashed vehicle Freeman was driving, sued for damages to cover medical expenses, lost wages, pain and suffering.
The settlement details have not been released.
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