March 23 (Bloomberg) -- Billionaire Stephen Wynn, chairman of gaming company Wynn Resorts Ltd., settled a lawsuit he brought against Lloyd's of London after he accidentally tore his 75-year- old Pablo Picasso painting ``Le Reve,'' court records indicate.

Wynn, 65, whose Wynn Resorts owns casinos in Las Vegas and Macau, sued Lloyd's on Jan. 11 for documents related to the insurer's appraisal of the work, worth $139 million before it was damaged on Sept. 30. A restorer said the repaired painting is worth $85 million, Wynn's complaint said.

Wynn reached a settlement with Lloyd's and dismissed the case, according to a document filed yesterday in Manhattan federal court. Terms of the settlement are not disclosed in the one-page document.

All claims ``are dismissed,'' the document says.

In his complaint, the casino owner said he hadn't been paid or received a counter-offer from Lloyd's, a 300-year-old insurance market. He was seeking to compel Lloyd's to surrender its documents appraising the loss.

Wynn's lawyer, Barry Slotnick, a lawyer for Lloyd's, George Lock, and a Lloyd's spokeswoman, Amanda St. Pierre, didn't immediately return calls seeking comment.

Wynn, who suffers from an eye disease that affects his peripheral vision, struck the painting with his right elbow while showing it to friends in his Las Vegas office, according to the complaint. He left a silver-dollar-size hole in the left forearm of the painting's subject, Picasso's mistress Marie-Theresa Walter, Slotnick said on Jan. 11.

Wynn paid $48.4 million for the painting in 1997 and had agreed to sell it to art collector Steven Cohen, founder of hedge fund SAC Capital Advisors LLC, for $139 million, Slotnick said. The accident was witnessed by screenwriter and director Nora Ephron, television personality Barbara Walters and writer Nicholas Pileggi, according to the lawyer.

Lloyd's has 66 membership syndicates that insure everything from satellites, art and jewelry to commercial buildings and airplanes. The underwriting business is backed by individual and corporate members.

The lawsuit is Wynn v. Lloyd's, 07-CV-202, Southern District of New York (Manhattan).

To contact the reporter on this story: David Glovin in federal court in New York at dglovin@bloomberg.net.

Last Updated: March 23, 2007 16:19 EDT