NEW YORK -- Bad Bunny's sports representation firm and the Major League Baseball Players Association filed an agreement Thursday to dismiss the union's lawsuit over penalties imposed for making improper inducements.

The sides submitted a stipulation telling U.S. District Judge Jennifer H. Rearden in Manhattan they had settled the matter.

The MLBPA disciplined Rimas Sports, the agency co-owned by Puerto Rican musical artist Bad Bunny, last April over violations of its agent regulations. It revoked the agent certification of Rimas' William Arroyo and denied certifications of executives Noah Assad and Jonathan Miranda, citing a $200,000 interest-free loan and a $19,500 gift. The union issued a $400,000 fine for misconduct.

Arbitrator Ruth M. Moscovitch last October upheld the union's five-year suspensions of Assad and Miranda and cut Arroyo's suspension to three years. The union filed a petition to confirm the 80-page decision in New York Supreme Court, and the case was shifted to federal court.

Representatives of the union and Rimas did not immediately respond to requests for comment.