Howard K. Stern Settles Gay Accusation Suit

(TMZ) Howard K. Stern has settled his lawsuit with a woman who claimed ... she and Anna Nicole Smith walked in on Howard and Larry Birkhead in the middle of a romantic liaison.

Stern -- who said the claim was a bold-faced lie -- sued Jackie Hatten for defamation, and now we've learned the case has settled. The terms of the settlement are confidential.

Hatten's account was published in Rita Cosby's book, "Blonde Ambition: The Untold Story Behind Anna Nicole Smith's Death." Stern also sued Cosby, and that case settled several years ago. more on this story

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