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CHICAGO-Celestial Seasonings and former agency Tatham Euro RSCG have settled out of court a lawsuit in which Tatham accused the herbal tea marketer of violating a contract with the shop.

Tatham filed the suit in U.S. District Court in November after being fired by Celestial Seasonings.

The Boulder, Colo.-based marketer dismissed Tatham just weeks after hiring the agency and moved its account, estimated at $6 million, to Grey Advertising, New York.

Celestial Seasonings wouldn't comment on the settlement; Tatham said the agreement recognized the shop's "good efforts" on the marketer's behalf.M

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