Shareholders in Slater and Gordon have reached a $36.5 million settlement with the beleaguered law firm, a move that will pave the way for the group's restructure.

However, it is unclear whether this is the end of the litigation process, with the firm leading one of the class actions Maurice Blackburn previously saying it was considering suing against Slater and Gordon's advisers.

Slater and Gordon's insurers will tip in $32.5 million of the settlement while the hedge funds that hold the debt in the group, which will be swapped for equity through the restructure, will contribute $4 million to the settlement.

"The conditional in-principle settlement will ... resolve any and all potential shareholder claims against the company and its directors and officers," Slater and Gordon said in a statement on Tuesday morning.