The 24-year-old was reprimanded by Spielberg and his lawyers after he revealed the storyline and every major scene of Indiana Jones and the Kingdom of the Crystal Skull to Oklahoma paper The Edmond Sun.
But the Hollywood filmmaker--who considered cutting out all of Nelson's scenes following the betrayal--has backed down from pursuing further legal action after a judge ruled Nelson knowingly breached a confidentiality agreement.
The details of the settlement between the two parties have not been disclosed.
The new Indiana Jones movie has been shrouded in secrecy since filming began earlier this year. The movie, which sees Harrison Ford return to the famed role, is due out in May 2008.
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