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Parties settle sexual harassment suit at Penguin Canada

David Davidar, formerly of Penguin Canada, photographed in Penguin's Toronto offices in 2003.

John Morstad/The Globe and Mail

The dust storm of racy allegations that blinded the Canadian publishing world last month died quietly Tuesday afternoon, when all three parties to a lawsuit alleging sexual harassment at Penguin Canada settled their disputes and pledged silence.

"We can now advise that all allegations have been addressed and all matters resolved to the satisfaction of all parties," Peter Downard, lawyer to former Penguin executive David Davidar, wrote in an e-mail. "None of the parties will be commenting further to the media."

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 Wednesday morning.

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The sensational tale began when Penguin Group CEO John Makinson jointly announced Mr. 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 she had been sexually harassed by Mr. Davidar, and that the company fired her when she complained.

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

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