Legal counsel for both Adam Lambert and Colwel Platinum Entertainment are still very much engaged in negotiations to settle a November lawsuit, despite early reports from celebrity gossip sites.

The lawsuit, filed by the company headed up by Lambert’s pre-Idol producer Malcolm Welsford, was initially to be answered by Jan. 3, 2012. Lambert’s legal representation negotiated a delay to push the response off to Jan. 17. When the date passed, reported that the deal fell through and the case would go to jury trial.

Not so, clarifies a source close to the case. Speaking on the condition of anonymity, the source had this to say:

“The article seems to have jumped the gun on Colwel v. Lambert, probably watching the court docket for any tidbit on celebrity cases. A settlement agreement is still actively being ironed out by both parties, and news will definitely be released when it is finalized.”