The Disney Channel star, 18, allegedly punched Alex Welch, 21, after tour managers confronted Lovato about her behavior on the tour.
Donald Karpel, who represents Welch, told Access Hollywood, "There is a settlement and all of the issues have been amicably and completely resolved."
Demi Lovato Reaches Settlement
"I'm happy. We came to an agreement and I'm ready to move on," Welch told People. "I'm ready to start working again," she continued.
The specific terms of the agreement were not disclosed, but Welch said part of the settlement would be donated to charity.
Lovato has been in treatment to address emotional and physical issues since November.
The settlement was first reported by People on Friday.
Demi Lovato Reaches Settlement
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