Dick's Sporting Goods (DKS) has reached a settlement agreement with Convergent Assets, which filed a lawsuit alleging patent infringement due to the use of a technology to generate social media-based advertising, according to a Thursday court filing.

The companies filed a notice of settlement in federal court in Texas, with the court granting their request to "stay all deadlines" for 30 days to allow them to file a joint motion to dismiss.

DKS shares were 1.1% higher in recent afternoon trading.

Price: 229.30, Change: +2.39, Percent Change: +1.05