PORT HAWKESBURY, N.S.—A Nova Scotia woman and her nephew have settled their painful, public dispute over a $1.2-million Chase the Ace jackpot that made headlines across Canada.

Barbara Reddick sued her nephew Tyrone MacInnis after a Cape Breton charity fundraiser’s grand prize was divided between the two, leaving them each with $611,319.50.

Reddick has said she put MacInnis’s name on the ticket for good luck and agreed to split the money if they won the consolation prize — but not the jackpot.

An emailed statement Tuesday from Reddick’s lawyer, Adam Rodgers, says the two sides have come to an agreement about the $611,319.50 at issue.

It says MacInnis will receive $350,000 and Reddick will receive $261,319.50, bringing her total winnings to $872,639.

“The parties are pleased to announce that they have reached a resolution ... They are both satisfied with the terms of the settlement. It was reached mutually in order to avoid further court proceedings and to bring this matter to a final conclusion,” the statement said.

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“Both parties are looking forward to putting this matter behind them, and no further media statements will be made.”

The controversy over the lottery in Margaree Forks, N.S., gained widespread attention after a celebratory photo op ended with Reddick telling her 19-year-old nephew she intended to take him to court. The scene was caught on video and quickly went viral.

Rodgers had told reporters previously that there had been no agreement of any kind to share the proceeds.

“She agreed to have his name on the ticket for good luck,” Rodgers said in July. “That’s obviously been a point of contention for some people but that in itself doesn’t create a contract.”

Rodgers said then that Reddick had been bothered by the breakdown in her relationship with her nephew. Reddick did not have children of her own and she has supported her nephew financially and emotionally, he said.

“This is a very special person in her life,” he said in July. “She hopes they can somehow reconcile that relationship in the future.”

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In August, Justice Patrick Murray granted a preservation order freezing MacInnis’s winnings until the case was resolved.

Chase the Ace has gained increasing popularity in Atlantic Canada in recent years, with rural areas using the lottery to raise money for everything from local fire departments to legions.

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