Close entertaining lawsuit wrapped up (7)
I believe the answer is:
encased
'wrapped up' is the definition.
(I've seen this before)
'close entertaining lawsuit' is the wordplay.
'close' becomes 'end' (I've seen this before).
'entertaining' is an insertion indicator.
'lawsuit' becomes 'case' (synonyms).
'end' enclosing 'case' is 'ENCASED'.
(Other definitions for encased that I've seen before include "in a box" , "Covered" , "wrapped up" .)