Ray had originally filed the lawsuit against Jackson and his production company in May 2009 - a month before the King of Pop passed away - claiming breach of contract, reported TMZ Online.
Ray said she was still owed a massive chunk of the 'Thriller' profits, nearly 30 years after it was released.
But she finally settled her lawsuit with the estate earlier this year.
The director of the music video John Landis - who filed a similar lawsuit against the estate - has also settled but he wanted in excess of USD 2 million and is said to have got more than Ray.