The amount of the settlement was not disclosed.
"The National Hockey League Players' Association (NHLPA) and the National Hockey League (NHL) have reached a settlement agreement regarding Mike Richards' standard player contract. The settlement amicably resolves the grievance filed by the NHLPA on August 10, 2015 in response to the Los Angeles Kings' termination of Richards' contract. Richards is an Unrestricted Free Agent," read the NHLPA statement.
The Kings had originally terminated Richards' deal in late June, citing a breach of contract after he was arrested June 17 at the Canadian border. He was charged later on with possession of a controlled substance, and his court date is schedule for Dec. 8 in Manitoba.
The NHL Players' Association grieved the Kings' decision to terminate the contract -- which had $22 million and five years left on it -- but the hearing with an independent arbitrator was never scheduled. And it never will be now that both sides have instead reached a settlement.
The Kings will carry salary-cap charges moving forward as a result of the Richards settlement, although the exact amount wasn't immediately known.
"The Los Angeles Kings have reached an agreement with Mike Richards to resolve the grievance filed in relation to the termination of his NHL Standard Players Contract," a statement from the Kings read. "The terms are agreeable to all parties. We will not be commenting further on the terms."
Richards signed a 12-year, $69 million contract with the Flyersin 2007 but spent the past four seasons with the Kings. Richards was a key contributor on the Kings' two Stanley Cup championship teams. However, he spent a portion of last season in the AHL after he went unclaimed on waivers.
Information from The Associated Press was used in this report.