Under the settlement, Wynn Resorts will pay a total $2.6 billion including the principal amount of the redemption note and interest owed by March 31, Universal Entertainment's law firm, Buckley Sandler LLP, said in a statement.
The 24.5 million shares, equivalent to around 20 percent of Wynn Resorts at the time of the lawsuit, are now worth around $4.4 billion.
Shares in the Japanese firm tumbled by their daily trading limit of 1,000 yen, shrinking its market value to around $4 billion.
The settlement resolves all claims between Wynn Resorts, Universal and Aruze, its then directors and executives with respect to the redemption, Wynn Resorts said in a separate statement.
Wynn quit as CEO of Wynn Resorts last month, following claims he subjected women who worked for him to unwanted advances. Wynn has previously denied the accusations.
Okada last year lost his board position at Universal with the board accusing him of misappropriating $20 million in funds. Okada has previously denied this.
Okada was also ousted as director of a Hong Kong investment company that controls Universal Entertainment amid a rift with family members over money and control.