Legal counsel for both Adam Lambert and Colwel Platinum Entertainment are still very much engaged in negotiations to settle a November lawsuit, despite early reports from celebrity gossip sites.

The lawsuit, filed by the company headed up by Lambert's pre-Idol producer Malcolm Welsford, was initially to be answered by Jan. 3, 2012. Lambert's legal representation negotiated a delay to push the response off to Jan. 17. When the date passed, lalate.com reported that the deal fell through and the case would go to jury trial.

Not so, clarifies a source close to the case. Speaking on the condition of anonymity, the source had this to say:

The lalate.com article seems to have jumped the gun on Colwel v. Lambert, probably watching the court docket for any tidbit on celebrity cases. A settlement agreement is still actively being ironed out by both parties, and news will definitely be released when it is finalized.  (continued below)

Adam Lambert's representative had not yet responded when this article went to press. Lambert himself has not tweeted a confirmation or denial to date.

Back in November, we reported that Adam Lambert was being sued by Colwel Platinum Entertainment for trying to block the sale of a collection of songs (entitled Beg For Mercy) written and recorded by Lambert prior to his rise to fame on American Idol. The album was released in October in both CD and digital formats. According to the court papers, Lambert had signed a Music Services Agreement that turned over all merchandising/distribution rights for the music along with 50% of the copyrights. Lambert countered that the songs were only demos and had never been recorded with an expectation of sale to the general public.

Adam Lambert is represented by Kevin Marks of Gang, Tyre, Ramer and Colwel Platinum Entertainment is represented by Joseph L. Golden.

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