Warner Bros. announced the settlement Monday of Sheen's lawsuit, in which he sought $100 million over his firing from "Two and a Half Men." The person familiar with the settlement said the $25 million would cover back-end payments for Sheen's appearances on the show.
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The settlement came a week after CBS premiered the first episode of "Two and a Half Men" with Ashton Kutcher taking over for Sheen. Sheen's character, Charlie Harper, was said to be dead in a train accident — though it was strongly implied that his new wife, his former neighbor with heavy stalker tendencies, had killed him.
Despite being killed off, Sheen has taken a warmer tone lately toward the show, saying at the Emmys that he wished the cast and crew "nothing but the best." He also said in a "Today" interview that he hoped to guest on — which may be complicated by his character's death.
Also read: Charlie Sheen at Emmys: 'Nothing But the Best' for 'Two and a Half Men'
Warner Bros. TV announced the settlement in a statement in which it said both sides had agreed to keep the terms of the deal confidential. The deal has been expected since word came last week that a settlement was near.
"Warner Bros. Television, Chuck Lorre and Charlie Sheen have resolved their dispute to the parties’ mutual satisfaction," the statement said. "The pending lawsuit and arbitration will be dismissed as to all parties. The parties have agreed to maintain confidentiality over the terms of the settlement."
Sheen filed the lawsuit against the studio and Lorre, the show's co-creator and his former boss, soon after his firing in March. He was fired after a media barrage in which he repeatedly insulted Lorre, saying he had for years turned jokes that were "tin cans" into "pure gold."
In their letter firing Sheen, studio lawyers said he had demonstrated "dangerously self-destructive conduct and appears to be very ill." But Sheen contended he was fired for ridiculing Lorre.
Now he has proven his ability to, if nothing else, turn getting canned into gold. But he won't make more money than he would have by keeping his job, in which case he would have received the same back-end payments, and continued to collect the $1.2 million-an-episode salary that made him TV's highest-paid star.
Including back end payments, he made about $2 million per episode at the end of his run on "Men."
Sharon Waxman and Tim Kenneally contributed to this story.