Censor.NET reports citing The Guardian.
Viktor Pinchuk, a flamboyant businessman who befriended former prime minister Tony Blair, launched the $2 billion claim against two other oligarchs over the 2004 purchase of a mining company in their native Ukraine.
A spokesman for Mr Pinchuk announced the case has been settled just three days before a marathon eight and a half week trial was due to begin at the High Court in London. Details of the settlement were not made available.
The court heard in a preliminary hearing last month extraordinary allegations that one of Mr Pinchuk's opponents in the case, Ihor Kolomoiskyi, was involved a series of murders and beatings in relation to another previous deal.
Mr Kolomoiskyi "strenuously denies" the claims of any illegal activities.
Although Ukrainian prosecutors passed a resolution to charge him with ordering Mr Karpenko's murder in 2005 it was never proceeded with, the court heard.
They also argued the series of allegations about Mr Kolomoiskyi were relevant to the current dispute over ownership of an iron ore mining company, KZhRK.
Mr Justice Males in the High Court ruled that evidence about the "Karpenko episode" will not be allowed in the full trial, which was due to begin on Monday.
The latest High Court cast a spotlight on what Mr Justice Males described as the "rough and tumble" world of Ukrainian business dealings at the time.
Mr Pinchuk, 54, made his fortune through a series of deals, many of them struck when his father-in-law, Leonid Kuchma, was president of Ukraine.
Mr Pinchuk began a relationship with Mr Kuchma's glamorous daughter, Olena - 10 years his junior - in 1997 and married her in 2002.
His connections have led the defendants in the case to claim he was able to exert political influence in the country and potentially secure "trumped up charges" against them, the court heard.
Mr and Mrs Pinchuk have worked hard to build their reputation on the world stage, spending large sums on philanthropy but also on one of London's finest houses - bought for a record £80 million in 2008 - and an expensive art collection, including several works by Damien Hirst.