Well the head mistress decided that this was defamation. You know how influential Oprah can be and with the Winfrey seal of approval withdrawn the woman would probably be out of her profession. More importantly she probably decided to that Oprah has enough money to make wrong right (No one has that much money!). So she sued.
Well no the law suit has been dropped. It was settled out of court, and without the head mistress's attorneys, and in a manner that Oprah's reps describe as "to both parties mutual satisfaction. If you're thinking pay off then you won't be alone. The less cynical among us might just wonder what sort of a new car Oprah bought the woman.
BTW I can report that the rumors that Lauren Velez, Lt. Maria Laguerta on Showtime's Dexter, has been approached to play Oprah Winfrey in a biopic are fabricated.