“Watchmen” Movie Lawsuit Update: Hearing Cancelled, Settlement Likely? According to the Hollywood Reporter, Warner Bros. and Fox have resolved their dispute over “Watchmen,” with the studios scheduled to present the settlement to Judge Gary Feess on Friday morning and request that the case be dismissed. Terms of the agreement will not be disclosed, but it is said to involve a sizable cash payment to Fox and a percentage of the film’s boxoffice. Fox will not be a co-distributor on the film, nor will it own a piece of the “Watchmen” property going forward. The studios are set to release a joint statement announcing the agreement Friday. A Warners spokesperson would not comment on the settlement. A Fox spokesman said no final deal had been reached.