LONDON—Representatives of Oleg Deripaska say the Russian metals magnate has settled a multibillion dollar lawsuit brought by fellow oligarch Michael Cherny over the latter's claim to a stake in Rusal, the world's largest aluminum producer.

London public relations firm Portman said Thursday that the case "has been terminated" and said neither party would be making any further comment. The terms of the deal weren't disclosed.

The agreement comes as the suit was due to go to court in London, a mammoth trial which promised to shed a harsh light on Russia's corruption-tainted metals industry.

Cherny, who lives in Israel, claimed that he and Deripaska had cheated him out of billions of dollars' worth of shares in Rusal, which is controlled by Deripaska. Deripaska denied the claim.