"This settlement puts an unhappy chapter in our long relationship with Freightliner behind us," said CEO Kevin Knight. "I am sure we both are excited about moving forward as business partners."
Knight Transportation filed the breach of contract suit in May, claiming the truck manufacturer failed to honor its four-year rolling truck purchase agreement.
In 1999, Freightliner was one of several companies said to have been generating sales by guaranteeing residual or “buyback” prices for its tractors.
Freightliner did not release a statement or comment about the settlement.