Software supplier JDA Software Group Inc has agreed to pay $57m in damages to department store retailer Dillard's Inc to end a long-running lawsuit on a software license and services agreement.

The dispute goes back to 2000 and relates to i2 Technologies Inc, which JDA acquired in January 2010.

In June last year a US court awarded Dillard's $246m in damages, but JDA, which sells supply chain management, merchandising and pricing solutions, subsequently appealed the judgment. It expects to take a pre-tax charge of $35m in the fourth quarter to pay the settlement.

"While we remain confident in the strength of our legal position, we entered into the settlement agreement to bring this matter to a conclusion," said JDA Software president and chief executive officer Hamish Brewer.

"With this settlement, and the $37.5m favourable patent infringement settlement earlier this year, we have now concluded all known, material outstanding litigation related to i2."