The lawsuit claimed Toyota reneged on a $1 million contract with the public relations firm that called for consultancy help to eliminate the threat of a boycott of Toyota dealerships by African Americans.
Rev. Jesse Jackson and his Rainbow/Push coalition threatened the boycott after protesting that a promotional postcard last spring targeting young African Americans was degrading.
Terms of the settlement are confidential.
Calhoun said Toyota later admitted it had
A Toyota spokesman said the carmaker did hire Calhoun, but decided to part ways with the firm after about a month. He said Toyota didn't have a contract or any long-term working arrangement with the public relations firm and that the disagreement was over the level of compensation.
"We're pleased it's settled," he said.