TODAY   |  January 26, 2013

Custody battle over Obie the Dachshund settled

The fate of the little dog with a big weight problem has been settled. Obie’s foster mom reached a settlement with the rescue group that first took Obie in, which comes after a fallout over the dog's fame. NBC's Diana Alvear reports.

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>>> you may remember obie , the little dog with a big weight problem. we all fell in love with him. for months, obie and his foster mom have been embroiled in a custody suit. that suit is now settled, and obie is slimming down. we have the story from los angeles .

>>> obie , come here.

>> reporter: every step obie takes is a triumph. the dachshund can walk or at least waddle. now that he's down to a svele 48 pounds.

>> good job.

>> reporter: he's dropped nearly 30 pounds under the care of foster mom nora. now his fur-ever mom after a legal fight.

>> i had to fight for obie because he's doing well here. you know, i think i can offer him what's best for him now.

>> reporter: the saga began had he was turned over to a portland rescue group by his elderly owners who could not provide the medical care he needed. then staff asked vanatta to help out. she set up a facebook page,

"biggest loser: doxie addition." and word spread of the dog with the winning smile and sweet disposition. it was his star shot on the "today" show. many weighed in but some claimed he was exploiting him for profit.

>> the dog was not to be a media sensation, it was to be cared for.

>> i wasn't exploiting him.

>> reporter: she said his fame was inevitable.

>> obie is like a magical dog. he appeals to everybody. his story just touches everybody in a different way.

>> reporter: fortunately for obie , the suit was just settled. the rescue group tells us they wish obie a healthy and happy future. that future is looking brighter than ever. obie 's losing a pound a week. on track to his goal weight of 35 pounds later this year.

>> go potty.

>> reporter: he's mastered the doggy door and conquered the outdoors. he's even developed a taste for carrots.

>> last one.

>> reporter: for "today," nbc news, los