We broke the story ... Tareq Salahi sued Neal for $50 mil, claiming Schon didn't just steal his wife ... but screwed him out of several lucrative opportunities he had planned to pursue with Michaele ... including reality TV shows.
The terms of the settlement are confidential.
A rep for Journey tells TMZ ... "Neal Schon and Journey are very pleased with the resolution of all legal issues and claims involving Mr. Salahi."
"While a judge previously dismissed Mr. Salahi’s claims on two separate occasions, all matters have now been finally resolved."
Sources close to the situation also tell us ... Michaele is also "very pleased" that her divorce is in its final stages.