A trial was set for December, but the two parties recently reached an agreement to settle the case out of court.
Hilton's attorneys had said the company misappropriated Hilton's image and her catch phrase, which she trademarked in 2007, months before the lawsuit was filed against Hallmark.
Hilton's lawsuit had sought a half-million dollars.
The Associated Press contributed to this report.
Do you want the Eyewitness News team to call you? Get a FREE Morning Wake-up Call and personalized weather report at abc7.com/wakeup
