Kanye West and his former business partner The Gap hashed out a secret settlement in their ugly $2 million court war, In Touch can exclusively report.

On March 19, lawyers for The Gap filed court documents, obtained by In Touch, revealing they were dropping all claims against Ye, 47.

However, a third party involved in the legal battle revealed they may add Ye as a defendant in an amended lawsuit.

Ye and The Gap announced a partnership in June 2020 between the entertainer’s clothing brand Yeezy and the retail giant.

The deal fell apart in 2022 after Ye publicly complained about issues behind the scenes. A short time later, Ye made a series of antisemitic remarks, which led to The Gap taking Ye’s clothing out of their stores.

As In Touch first reported, the legal drama between started when, Art City Center LLC, the landlord for a commercial property in Downtown Los Angeles, filed a lawsuit against The Gap in 2022.

Art City alleged that The Gap leased the property to be used by Ye for the partnership. In the lawsuit, the landlord claimed The Gap made numerous “significant, unapproved modification” to the building.

The landlord demanded over $800,000 in damages.

In response, The Gap denied all allegations of wrongdoing and pointed the finger at Ye for any issues.

The Gap filed a countersuit against Ye. The company asked that Ye and his team be responsible for any judgment awarded to Art City.

The Gap claimed it was unaware of the changes to the building and any modifications were made by Ye, which he did not discuss with them.

A lawyer for The Gap argued, “The performance of the work not only breached the Strategic Agreement, but the manner of preparing for and performing the work caused the need for the repairs and restoration alleged in the complaint.”

The Gap’s attorney continued, “By making and not repairing or restoring the foregoing alterations of the Premises that [Ye] made without Gap’s participation or approval, [Ye] breached the Strategic Agreement and directly and proximately caused Gap to incur expenses to repair and restore the premises.”

Ye denied all allegations of wrongdoing.

His lawyer argued, “Gap’s claims fail because the June 25, 2020, Strategic Agreement between Gap and Yeezy Supply (Strategic Agreement”) is invalid or voidable.”

Ye’s lawyer told the court, “Many of the modifications complained of were in fact beneficial to the Premises and all were carried out for the benefit of the Strategic Agreement with Gap. Gap must have anticipated that modifications such as were made to the Premises are typical for this type of business.”

A couple of weeks after The Gap dismissed all their claims against Ye, Art City filed a motion asking for permission to add Ye as a defendant to their suit against The Gap.

“Gap recently settled with the YE Defendants, and just a few weeks ago in March 2025, Gap disclosed to Art City for the first time the settlement terms between Gap and YE Defendants,” the motion read.

Art City said when The Gap filed the countersuit against Ye, it allowed them to conduct discovery it needed from both Gap and Ye in the case.

However, to make sure they are allowed to pursue claims against Ye, they want to file an amended suit with Ye as a defendant.

The landlord said the claims against Ye will be negligence, conversion, trespass and unjust enrichment. The court has yet to rule.