Ann Freedman, the former president and director of Knoedler & Company, has settled out of court in a fraud lawsuit brought against her and the gallery by collectors Domenico and Eleanore De Sole, according to the New York Times. The attorneys for both parties confirmed the settlement to the paper on Sunday, just one day before Freedman is scheduled to testify in court. The case against Knoedler gallery and its parent company, 8-31 Holdings, will continue in US District Court in Lower Manhattan.