Luca Leone was banned from the game 13 times for using cheating software. The suit also alleges threats of violence.
The perpetrator, Nicholas Minor, sent the fake takedowns after Bungie removed his own videos, which did violate copyright laws, earlier in the year.
The parties reached a consent judgment before the case could go to trial.
The Destiny 2 studio can still refile an amended complaint to bring further action against the site.
Also affected is developer Bungie, who said the takedowns did not originate from within the company.
The purchase caps off a busy January for mergers and acquisitions activity. GameDaily spoke to several analysts about the implications of the deal.
The companies seek to shore up their reputation with the suit, but it hinges on whether courts deem the cheats derivative or not.
Remote work policies are starting to crop up as the industry seeks to mitigate employee exposure. As the virus limits manufacturing, there could even be a delay to PS5 or Xbox Series X launches.
The video game industry is plagued by a culture of crunch that prioritizes profit over the physical and mental well-being of its employees. Recently, some companies have made efforts to buck this trend, which is a welcome change.
Despite NetEase investment for new project, Destiny is still the long-term goal.
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