In the latest twist in the high profile case of a young man who disappeared from a cruise ship while on his honeymoon, Royal Caribbean Cruises announced June 29th it had reached a settlement with his widow only hours after the man's family sued for damages.

George Smith, 26, a resident of Greenwich, Connecticut, disappeared from the cruise ship Brilliance of the Seas in the wee hours of July 5, 2005, while it was sailing in the Mediterranean. Smith's body was never found, and he is presumed dead.

Smith had spent the previous night partying with his wife -- later found passed out in a hallway -- as the ship sailed from Greece to Turkey. Several male passengers reportedly walked him to his cabin.

A blood-stained metal awning outside Smith's cabin raised the possibility of foul play. In the months following his death, Smith's parents and sister made numerous appearances on television criticizing Royal Caribbean's response to his disappearance.

A lawsuit filed June 29th in Miami-Dade Circuit Court by Smith's parents and sister seeks compensatory and punitive damages, accusing Royal Caribbean of "shocking" and "atrocious" behavior by playing down the possibility of murder to protect its public image.

"The cruise line deliberately and intentionally portrayed the incident as an accident and hampered a full-blown, appropriate investigation into the facts and circumstances of George A. Smith's death," the lawsuit alleges.

Royal Caribbean President Adam Goldstein termed the lawsuit "an unconscionable attack on our company and its employees, who have done everything they could to fully support the authorities and their investigations.''

Then hours later, Royal Caribbean announced it had reached an agreement with Smith's widow, Jennifer Hagel Smith, settling any potential claims regarding the death of her husband.

"We have done our best to assist Jennifer through the tragic events
involving the disappearance of her husband," Goldstein said. "She has handled herself well under the most trying of circumstances and we applaud her constructive approach to resolving this matter -- so much so that our company will also match a contribution by Ms. Hagel Smith to a charity of her choosing.

"We believe this agreement will help Jennifer to move forward in her life, while honoring the memory of her beloved husband," he added.

"This has been the most difficult and challenging year of my life," said Ms. Hagel Smith. "I will always love George and cherish our time together. I appreciate Royal Caribbean's cooperation, sincerity and efforts moving forward, which I believe will play a major role in helping all of us find closure."

The Smith family's suit against Royal Caribbean reiterates complaints that Royal Caribbean turned over the probe to Turkish authorities, who ''did not have the appropriate desire and incentive to conduct a full and complete investigation.''

When the line notified the FBI, it ''portrayed the incident simply as a passenger who had gone missing,'' the suit states.

"While we continue to work diligently to assist the FBI in its investigation, and we continue to extend our deepest sympathy to Jennifer Hagel Smith and the Smith family, we look forward to proving that the claims in this lawsuit are false," Goldstein said.