The heirs of J.R.R. Tolkien and a movie studio that produced the blockbuster “The Lord of the Rings” trilogy have settled a lawsuit over the films’ profits, MSNBC.com reports. The out-of-court resolution clears the way for a two-film prequel based on Tolkien’s novel “The Hobbit” and will benefit charities around the world, according to a joint press release announcing the settlement.

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