Mr Adigun, of Moorefield Cottages, Roebuck Road, Clonskeagh, Dublin, had claimed 120 changes had been made to the co-written version which was successfully produced in the Dublin Theatre Festival in 2007.
Mr Adigun and his theatre company, Arambe Productions, claimed the Abbey, in conjunction with Mr Doyle, remounted "a distorted version" in 2008/9, produced by Mr Fay.
The case was due to be heard yesterday when Mr Justice Kevin Feeney was told by Michael Cush, for Arambe Productions, that it had been settled on the terms of a statement which was read out in court.
It stated the defendants have acknowledged, and now acknowledge, that there are royalty payments due to Arambe from both the first and second production runs of the play.
They also acknowledged that there "were alterations to the script for the second production run of the play which were not authorised by Mr Adigun".
In recognition of this, the Abbey had agreed to make certain payments to Arambe and Mr Adigun.
It further stated Mr Doyle has "decided to transfer and assign all of his rights of whatever nature" in the co-authored version of the play to Mr Aidgun.
Certain other terms were also agreed between the parties and on that basis all outstanding litigation has been resolved, the statement added.
In his original statement of claim, Mr Adigun said that while writing an essay entitled An Irish Joke, A Nigerian Laughter for a book of essays in 2003, he thought it would be "a marvellous idea" to write a modern version of the Playboy with a Nigerian refugee as Christy Mahon.
Mr Adigun said he approached Mr Doyle to co-write the play and also got a €10,000 grant from the Arts Council for Arambe.
With that money, he and Mr Doyle were engaged and formally commissioned by Arambe to co-author the play under an agreement of February 6, 2006, he claimed.
When the play premiered at the Dublin Theatre festival and ran for seven weeks, the Abbey failed to pay some €20,860 royalties, he claimed.