Davidar settles sexual harassment suit out of court

David Davidar, the India-born former President of Penguin Canada who was forced to quit following allegations of sexual harassment by a colleague, has reached an out-of-court settlement with the accuser who was demanding $523,000 in damages from him and the publishing firm.

Lisa Rundle, a former Rights and Contracts Director of Penguin Canada, had filed a lawsuit on June 10 in an Ontario Superior Court of Justice, alleging that Mr. Davidar had sexually harassed her repeatedly over the past three years, culminating in outright assault at the Frankfurt Book Fair last fall.

However, Mr. Davidar, 52, the “golden boy” of international publishing industry, dismissed the charges but admitted that he had a “consensual, flirtatious relationship” with Ms. Rundle, who had also claimed that she was fired after complaining to superiors about his “twisted treatment” of her.

All three parties to the lawsuit — Ms. Rundle, Mr. Davidar and Penguin Canada — settled their disputes on Tuesday 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, Mr. Davidar's lawyer, was quoted as saying by The GlobeandMail .

“None of the parties will be commenting further to the media.”

However, the report did not give details of the settlement.

Penguin spokesperson Yvonne Hunter also said that “everything has been settled.”

The company expects to follow the news by announcing the name of Penguin Canada's new President shortly, she said.

The allegations about sexual harassment came to light after Penguin Group CEO John Makinson jointly announced Mr. Davidar's departure in June, suggesting that he was leaving voluntarily to write novels.

Days later, Mr. Davidar said the company had terminated his services in the wake of the $523,000 sexual harassment suit slapped against him by Ms. Rundle.

Ms. Rundle was claiming damages of $423,000 from Penguin for “wrongful” dismissal and the “harsh, vindictive and malicious fashion” with which it allegedly treated her following her complaints against Mr. Davidar.

She was also seeking damages of $100,000 against Mr. Davidar, who came to Canada from Penguin India in 2003, personally. — PTI