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Snapchat settles suit with booted co-founder Reggie Brown

After much legal wrangling, the fraternity brothers come to an agreement about the early development of the ephemeral messaging app.

Reggie Brown, Bobby Murphy, and Evan Spiegel, pictured left to right, celebrating Snapchat's launch in July 2011. Screenshot/Jennifer Van Grove/CNET

Snapchat has come to an agreement with its ousted co-founder Reggie Brown. The company announced Tuesday that it has settled a lawsuit brought by Brown on claims he was entitled to a one-third stake in the startup, according to the San Francisco Chronicle.

A fraternity brother of Snapchat CEO Evan Spiegel and CTO Robert Murphy, Brown claimed he came up with the idea for the ephemeral messaging app in 2011 while he was attending Stanford University. Brown said he shared the concept with Spiegel, who allegedly called it a "million-dollar idea." In 2011, Brown was pushed out of the company, which is now worth $10 billion.

Brown first brought the lawsuit in February 2013. After much legal wrangling over the past year -- including a judge denying Snapchat's motion for a temporary restraining order against Brown -- it appears the case has finally come to an end.

Both Spiegel and Murphy claimed Brown was not part of the company. However, in his testimony, Spiegel did say "Reggie may deserve something for some of his contributions."

The terms of the settlement were not disclosed. When contacted by CNET, Snapchat declined to comment.