News Corp., the owner of the Wall Street Journal, will pay $500 million to settle a lawsuit filed by Michigan-based Valassis Communications Inc. over competition in the newspaper insert business.

A federal case filed by Valassis Communications against News Corp.’s News America Marketing unit had been scheduled to open in Michigan on Tuesday.

It was informed that the $500-million settlement deal would cover the $300-million jury award in July by a Michigan circuit court plus the federal and California cases.

Commenting on the topic, Valassis’s chairman and CEO Alan F. Schultz said, “I am pleased that we were able to reach a mutually agreeable settlement and avoid protracted future litigation.”

The newspaper coupon and direct mail firm, Valassis, had filed a lawsuit against the News Corp.’s News America Marketing unit, accusing it of unfair business practices.

In the after-hours trading, share in Valassis climbed 40 cents to $20.93, while News Corp. shares added 9 cents to $12.61-a-share.