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The lawsuit accused Daniels' former lawyer, Keith Davidson, of colluding with President Donald Trump's former lawyer, Michael Cohen
It accused Davidson of being a puppet for Trump and secretly working with Cohen to have Daniels, 40, deny having an affair with Trump
A notice to the court indicated that Daniels reached an agreement in principle with Cohen to settle the claims
Davidson said the settlement is a 'walk-away' and that no money will be exchanged
The lawsuit was fallout from Daniels' lawsuit against Trump, which sought to tear up a hush-money settlement about their alleged 2006 affair
The lawsuits were filed while Daniels' attorney was Michael Avenatti, who currently is facing multiple federal charges

By Chantalle Edmunds For Dailymail.com And Ap

Published: 21:38 EDT, 17 May 2019 | Updated: 21:38 EDT, 18 May 2019

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Porn actress Stormy Daniels has agreed to dismiss a lawsuit that accused her former lawyer of colluding with President Donald Trump's former lawyer, Michael Cohen, to have her deny having an affair with Trump.

A notice to the court on Thursday indicated that Daniels, 40, - whose real name is Stephanie Clifford - reached an agreement in principle with Cohen to settle the claims and a final agreement with her ex-lawyer, Keith Davidson.

Davidson said the settlement is a 'walk-away' and that no money will be exchanged.

Stormy Daniels attends a signing for her book 'Full Disclosure' at the 2019 AVN Adult Entertainment Expo at the Hard Rock Hotel & Casino on January 26. A notice to the court indicated that Daniels reached an agreement in principle with Cohen to settle the claims and a final agreement with her ex-lawyer, Keith Davidson

Keith Davidson (pictured right on Good Morning America) said the settlement is a 'walk-away' and that no money will be exchanged. David is seen here with client Capri Anderson (pictured left) a woman who was found in actor Charlie Sheen's hotel room the morning of his arrest in November 2010

The lawsuit was fallout from Daniels' lawsuit against Trump, which sought to tear up a hush-money settlement about their alleged 2006 affair. (Daniels pictured with Trump above)

The lawsuit accused him of being a 'puppet' for Trump and secretly working with Cohen to have Daniels appear on Fox News and falsely deny having sex with Trump. The interview never took place.

'The lawsuit was a sham from day one, it never should have been filed, quite frankly,' Davidson said Friday.

Messages left for attorneys representing Daniels and Cohen were not immediately returned Friday.

Michael Cohen, former attorney to President Donald Trump, leaves his apartment building before beginning his prison term in New York on May 6. The lawsuit accused Keith Davidson of being a puppet for Trump and secretly working with Cohen to have Daniels deny having an affair with Trump

The lawsuits were filed while Daniels' attorney was Michael Avenatti, (pictured on the right) who currently is facing federal charges in a case alleging he stole millions of dollars from clients, cheated on taxes and committed bank fraud. Avenatti and Daniels attend the 2019 Adult Video News Awards at The Joint inside the Hard Rock Hotel & Casino on January 26

The lawsuit was fallout from Daniels' lawsuit against Trump, which sought to tear up a hush-money settlement about their alleged 2006 affair. The president has denied the affair but Cohen admitted in federal court he arranged the payment to silence Daniels and help Trump win the presidency. He pleaded guilty to campaign violations.

Daniel said she signed a nondisclosure agreement about the affair in exchange for a $130,000 payment. She signed the agreement days before the 2016 election. She wanted a Los Angeles court to declare the agreement illegal so that she could speak out without fear of financial penalty.

But in March a federal judge tossed out her lawsuit against Trump, saying it was irrelevant after Trump and Cohen both agreed not to penalize Daniels.

Stormy Daniels arrives at the adult entertainment fair 'Venus' in Berlin on October 11, 2018. A notice of agreement with Cohen and Daniels' ex-attorney, Keith Davidson, were filed Thursday, May 16, with a Los Angeles court

The lawsuits were filed while Daniels' attorney was Michael Avenatti, who currently is facing federal charges in a case alleging he stole millions of dollars from clients, cheated on taxes and committed bank fraud.

Davidson said the agreement to dismiss Daniels' case against him came quickly after Avenatti departed.

'I think it was unfortunate that it was ever filed,' he said. 'I think the only purpose this lawsuit served was to get Mr. Avenatti's face on TV.'

Avenatti replied Saturday: 'The emails and text messages show that Davidson sold out his client to help elect Trump.'