The government has agreed to pay £33m to Eurotunnel over the procurement of no deal Brexit ferry services, according to reports.
Eurotunnel said the contracts to provide ferry services in the event of a no deal Brexit had been handed out in a secretive way, according to the BBC.
The government has agreed to pay the company, which operates rail services between the UK and France, in order to settle the lawsuit.
As part of the deal Eurotunnel has agreed to make improvements at its terminal.
Seaborne Freight was one of the companies that was awarded a contract, however the deal was cancelled after it was revealed that the firm had no ships.
Eurotunnel wrote to transport secretary Chris Grayling in January to complain that it had not been approached about making a bid to provide the service.
City A.M. has contacted the Department for Transport for comment.