Dovetail co-founder and CEO Benjamin Humphrey has reached a private settlement with Bethany Lo Russo, the company’s former legal counsel, effectively ending a sexual harassment lawsuit that had persisted for nearly two years.

Lo Russo withdrew her case in the Federal Court of Australia, which had accused Humphrey of forcing her into a romantic relationship.

The settlement removes a material reputational and legal risk for Dovetail, a private artificial intelligence company valued at over $1 billion.

The resolution was confirmed by the Australian Financial Review, marking the conclusion of a protracted legal dispute that had drawn attention to governance practices within the high-growth technology firm.

The settlement removes a material reputational and legal risk for Dovetail, a private artificial intelligence company valued at over $1 billion.

For investors and potential acquirers, the closure of this litigation eliminates a lingering uncertainty that could have complicated future fundraising rounds or an eventual public listing.

While the specific terms of the settlement were not disclosed, the withdrawal of the case suggests both parties have reached a mutually agreeable resolution.