Davidar ends sexual harassment case out of court

Indian-born former Penguin Canada CEO David Davidar and two other parties -- Penguin Canada and Lisa Rundle -- have settled a lawsuit alleging sexual harassment out of court and pledged silence.

"We can now advise that all allegations have been addressed and all matters resolved to the satisfaction of all parties," the Globe and Mail quoted Peter Downard, a lawyer representing Davidar, as saying in an e-mail.

"None of the parties will be commenting further to the media," he added.

Penguin spokesman Yvonne Hunter confirmed the news.

"Everything has been settled," she said, adding that the company

expects to follow the news by announcing the name of Penguin Canada's new president on Wednesday.

The sensational tale began when Penguin Group CEO John Makinson jointly announced Davidar's departure in June, suggesting the president of Penguin Canada was leaving voluntarily to write novels.

But soon after, former Penguin Canada executive Lisa Rundle filed a lawsuit claiming that Davidar had sexually harassed her, and that the company fired her when she complained.

In response, the company admitted that it had fired Davidar as a result of the alleged incidents, which were described in vivid detail in Rundle's statement of claim.