According to TMZ, Cage claimed that Levin made reckless and irresponsible investments with the star's finances that cost him millions.
The Ghost Writer actor suggested that Levin's actions were to blame for his $14m (£9m) tax debt.
Levin countersued, alleging that Cage's out-of-control spending habits led to his current financial problems and tax debt.
However, court documents indicate that the pair have settled their suit and countersuit. Details about the settlement are being kept under wraps.
A source was quoted as saying that Cage is "happy" that the legal dispute has been resolved.