Abba have reached a settlement with a tribute band they described in a lawsuit as “parasitic and bad faith”.

Lawyers for Abba filed the lawsuit in December, arguing that the British group Abba Mania could be confused with the original act. They said they had asked Abba Mania to change their name but the quartet had refused.

Terms of the settlement have not been disclosed, but one of Abba’s lawyers has claimed the tribute artists will stop using the Abba name. The Guardian has contacted Abba Mania for comment.

Abba Mania formed in 1999 and describe themselves as “the world’s most successful touring Abba show”. They are due to tour France in March and the UK in April, and have previously toured across Europe and the Americas.

Since Abba’s split in 1982, the Swedish quartet’s popularity has been buoyed by the success of the Abba Gold compilation and the musical Mamma Mia!, generating a substantial market for tribute shows, also including the likes of Björn Again.

The lawsuit was filed shortly after the announcement that Abba were themselves returning to the live stage – or, at least, a motion-captured digital version of the group. The concert experience Abba Voyage, featuring avatars of the group performing along with a live band at a custom-built arena in east London, begins in May.

Abba released their first album in 40 years in 2021, Voyage, which reached No 1 in the UK and saw the group nominated for Grammy and Brit awards.