Last year, Hydroderm alleged in a $2.8 million lawsuit that Teri Hatcher had entered into an "exclusive endorsement deal" in 2005, only to sing the praises of City Cosmetics. The actress responded that she had "done absolutely nothing wrong" and vowed to aggressively fight the lawsuit, which went into arbitration.

Now Hydroderm has apologized to Teri Hatcher and has retracted the allegations, with Hydroderm spokesperson Joshua McCleary releasing this statement:

"Hydroderm LLC has specifically retracted all accusations made against Teri Hatcher including that she endorsed any competing products. Teri Hatcher is a woman of the highest integrity. We sincerely apologize for the adverse publicity resulting from our lawsuit."

Hatcher also received an undisclosed amount of money.

Good lawyers like this are hard to find.

Teri Hatcher performed a Carrie Underwood song last night with The Band from TV on Idol Gives Back. Terri is a really good singer, for an actress.

Yes, Teri Hatcher really can sing. A few years ago Hatcher appeared in Cabaret, and she was good. Teri will sing with the Band From TV on American Idol Gives Back next week. The Band From TV includes James Denton (Desperate Housewives), Hugh Laurie (House), Greg Grunberg (Heroes) and Bonnie Somerville (Cashmere Mafia). Should be a good show.

Hydroderm has filed a lawsuit against Teri Hatcher for breach of contract. Make special note that Teri has been using City Cosmetics product to plump her lips rather than Hydroderm’s. Teri was paid $2.4 million to promote the Hydroderm product. The contract included an anti-competition clause. Court papers go on to say:

“Hatcher’s name, image and likeness have been linked to so many competitors’ products (at least 17!) that it is anyone’s guess as to what product keeps her skin and lips youthful.”

If Hydroderm already knew Teri used so many other products, then why did they sign her? Were they planning this lawsuit as soon as they got the publicity, and then a little more with the lawsuit? The real story here is, use City Cosmetics if you want to plump up your lips.

Teri Hatcher had lunch with Former President George H.W. Bush, after which he patted her on the butt. See it here with video.