Update: Backup Dancer "Ready to Move On" from Demi Lovato Lawsuit

Demi Lovato has reportedly settled out of court with Alex "Shorty" Welch, the backup dancer that she allegedly physically assaulted back in October. 

Welch's attorney Donald Karpel tells E! News that "any and all issues or dispute with Demi Lovato have been resolved amicably and completely." 

This is good news for Lovato, especially since Karpel had threatened to sue the Disney star in court for allegedly giving his client a black eye that forced her to consult a plastic surgeon. 

Latina.com reached out to a rep for Lovato, but the rep declined to comment on this story.

In November, we reported that Demi had a fight with a dancer on the Jonas Brothers World Tour, which prompted her to leave the tour and check into an inpatient rehab center “for emotional and physical issues."

Lovato is still in rehab, and hasn't returned to work on her hit series, Sonny With a Chance.

Today, Welch confirmed to People.com that she and Demi have worked out their issues.

"I'm happy," she said. "We came to an agreement and I'm ready to move on."

Welch, 21, reportedly asked for a portion of the settlement to be donated to charity.