A lawsuit over Heath Ledger’s $10m (£7m) life insurance policy has been settled out of court.

American firm ReliaStar Life Insurance was sued by the late actor’s lawyer, who claimed the company refused to pay death benefits to Ledger’s 3-year-old daughter Matilda.

Ledger died in January 2008 from an accidental prescription drug overdose. It was claimed the company refused to pay until it had investigated whether Ledger committed suicide.

Details of the settlement have not been released.