Fenway Sports Group (FSG) completed their takeover in October 2010, bringing to an end the acrimonious reign of Hicks and Gillett who tried to block the sale by RBS bank.
"As a consequence of that sale, Thomas Hicks and George Gillett (being the former owners of Liverpool FC) made a number of allegations and claims against Sir Martin Broughton, Christian Purslow and Ian Ayre (being the company directors responsible for the sale of Liverpool FC to the Fenway Sports Group). Those allegations and claims were denied by Messrs Broughton, Purslow and Ayre," Liverpool said in a statement on their website.
"The allegations, claims and denials resulted in legal proceedings being commenced.
"The parties have now agreed a settlement (the terms of which are confidential). All claims and allegations made against Messrs Broughton, Purslow and Ayre have been withdrawn by Messrs Hicks and Gillett and all legal proceedings between the parties concluded.
"The parties will not be making any further statement to the press."
The legal battle began after Liverpool was sold by RBS to Fenway - headed by American businessman John W. Henry - in a £300-million deal in October 2010.
Hicks and Gillett alleged that the club had been sold at a "substantial undervalue", terming the sale an "epic swindle".