The action,run by Maurice Blackburn and litigation funder IMF Bentham,commenced three years ago in the name of shareholder Brian Jones.
The company,which recently reported a55 per cent jump in net profit after tax to $269.1 million for fiscal 2017,told the market that the settlement came"without any admission of liability and is also subject to court approval".
Treasury had been accused of misleading the market and of breaching continuous disclosure obligations regarding a $160 million write-down of its US operation four years ago which included the infamous $30 million destruction of surplus wine.
The lawsuit alleged that Treasury has misled its investors by releasing an unrealistic profit guidance in late 2012 that would have required a turn around in its American business despite adverse trends.
That guidance was met but only achieved by over-supplying its American distributors which resulted in an inventory bulge. That bulge had to be sold off at a discount prompting the writedown and destruction of stock including six million out-of-date bottles as 18 million bottles were tipped out.
"The settlement amount,$49 million inclusive of interest and costs,is fully insured and will have no impact on the company's financial results,"Treasury said in a statement to the ASX.
"The agreement to settle was a commercial decision made in the best interests of TWE shareholders to enable the company to remain focused on executing against its strategy without the distraction and expense of the legal proceeding."