Senator Linda Reynolds has received $90,000 and an apology for "damage, distress and embarrassment" caused after the ACT's former top prosecutor accused her of disturbing conduct during Bruce Lehrmann's rape trial.
In a letter of complaint addressed to the Australian Federal Police, former Director of Public Prosecutions Shane Drumgold alleged she "engaged in direct coaching of the defence cross-examination of the complainant".
Senator Reynolds launched a defamation case against him and the ACT government in December after the document was published by media, claiming it caused significant loss and damage.
And on Friday, all parties reached a compromised settlement.
Senator Reynolds has been paid $70,000 in damages and $20,000 in legal fees.
The ACT government also issued a formal apology and retracted the allegations contained in Mr Drumgold's letter while directing current DPP staff not to publish further allegations against the former defence minister.
"We accept that allegations about Senator Reynolds made by the former Director of Public Prosecutions were found by the Board of Inquiry to be defamatory," a Justice and Community Safety Directorate spokesperson said.
"We will not be commenting further on this matter."
The apology has since been shared in a statement from Senator Reynolds.
"The Director-General of the Justice and Community Safety Directorate sincerely apologises for the damage, distress and embarrassment it has caused to Senator Reynolds," the statement read.
Lehrmann was accused of raping fellow political staffer Brittany Higgins inside Senator Reynolds' ministerial office in 2019, but his 2022 trial was abandoned due to jury misconduct and a retrial was called off due to concerns about Ms Higgins' health.
He has denied the accusations.
Senator Reynolds said the settlement was the fifth she had resolved "to (her) satisfaction".
"Since the conclusion of the criminal trial ... I have set about vindicating my reputation, which I consider has been wrongly damaged," she said in a statement.
"I am pleased that in a further significant step in that process, I have settled my defamation claim."
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