Nicolas Cage has settled his $20 million lawsuit against his former business manager.

The 45-year-old actor - who owes over $14 million in unpaid taxes and has been forced to put several of his properties on the market - has dropped his action against Samuel J. Levin, who he alleged caused him huge financial losses by making bad investments.

The accountant had counter-sued for unpaid fees before it as announced on Wednesday (01.09.10) that the pair had settled their claim.

Terms of the settlement have been kept confidential, however a source revealed, "Nicolas is happy that it is resolved."

In the original lawsuit filed in October 2009, the 'Leaving Las Vegas' star had claimed his business manager made reckless investments on his behalf, leaving him with a huge tax debt.

Court documents filed at the time state that over seven years Samuel "placed Cage in numerous highly speculative and risky real estate investments, resulting in Cage suffering catastrophic losses".

In his countersuit, Samuel insisted the actor's dire financial situation was due to his "compulsive, self-destructive spending," including splurging on $33 million worth of property and 22 cars.

It is thought that Nicolas agreed to settle to prevent more embarrassing tales of his huge spending sprees being made public.

Legal documents have already revealed purchases of "15 palatial homes around the world, four yachts, an island in the Bahamas, a Gulfstream jet, millions of dollars in jewellery and art."