CBS/AP/ December 10, 2012, 3:02 PM

Settlement reached in Strauss-Kahn, NYC hotel maid case

Nafissatou Diallo, who claims she was sexually assaulted by the former International Monetary Fund leader Dominique Strauss-Kahn, arrives at a Bronx courthouse on Dec. 10, 2012 in New York.

Nafissatou Diallo, who claims she was sexually assaulted by the former International Monetary Fund leader Dominique Strauss-Kahn, arrives at a Bronx courthouse on Dec. 10, 2012 in New York. / AP Photo/Craig Ruttle

NEW YORK Former International Monetary Fund leader Dominique Strauss-Kahn and a New York City hotel maid have signed a settlement of her sexual assault lawsuit, a judge announced Monday, saying terms of the deal were confidential.

The lawsuit stemmed from a May 2011 hotel suite encounter. It also spurred criminal charges, forced Strauss-Kahn's resignation from the IMF and cut off his potential candidacy for the French presidency.

The criminal case was dropped after prosecutors said his accuser, Nafissatou Diallo, had credibility problems. She said she always told the truth about the encounter.

Strauss-Kahn called her suit defamatory and countersued for $1 million. He submitted the claim two weeks after a court denied his claim that he should be protected under diplomatic immunity.

Strauss-Kahn's lawyers acknowledged late last month there had been settlement talks, though they dismissed as "flatly false" a French newspaper report that Strauss-Kahn had agreed to pay $6 million. Diallo's lawyers declined to comment.

Both Diallo's and Strauss-Kahn's lives have been upended since the day in May 2011 that she reported he forced her to perform oral sex and tried to rape her after she went to clean his room. He said the encounter was consensual.

Diallo, 33, a Guinean immigrant and widowed mother of a teenage girl, was whisked into protective custody with her daughter for weeks in a hotel. She hasn't returned to the job she held for three years at the Sofitel New York; she is on workers' compensation, the hotel chain says. Her lawyers have said Strauss-Kahn tore a ligament in her shoulder, which he disputes.

Strauss-Kahn, 63, was arrested and charged with attempted rape and other crimes and resigned from his IMF job. He soon found himself recast from promising, if philandering, French presidential contender to transcontinental sexual suspect. Since Diallo came forward, other sexual assault and prostitution allegations have emerged against him.

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Though some were withdrawn or deemed too old for prosecutors to pursue, he faces aggravated pimping charges related to a suspected prostitution ring run from a French luxury hotel. He says he attended "libertine" gatherings but wasn't aware anyone was paid for sex. A French court is due to rule Dec. 19 on his bid to get those charges thrown out.

French prosecutors are also investigating claims of rape that allegedly took place during December 2010 at the W Hotel in Washington. Two Belgian prostitutes questioned in another probe said Strauss-Kahn was violent during sex with them. One of them said the Strauss-Kahn forced a sexual act even as she objected, and another man held her arms down as the former IMF chief assaulted her. Though neither woman has pursued legal action, French laws allow authorities to investigate without a formal complaint.

Adding further turmoil to his personal life, Strauss-Kahn and his wife, journalist Ann Sinclair, have separated. Strauss-Kahn has been trying to rebuild his professional stature by giving speeches at international conferences and reportedly setting up a consulting company in Paris.

Manhattan prosecutors dropped their case against Strauss-Kahn in August 2011, saying they had developed doubts about Diallo's trustworthiness. They said she had wavered in recounting her movements after the alleged attack and lied to them about her past, including a convincing but fictitious story of being gang-raped before.

Diallo's attorneys said her civil case would prove her right about Strauss-Kahn.

"It didn't happen with the DA, but we intend to vindicate Ms. Diallo's rights," one of her lawyers, Kenneth P. Thompson, said in March.

Strauss-Kahn's side was no less blunt.

"We have maintained from the beginning that the motivation of Mr. Thompson and his client was to make money," William W. Taylor III and other Strauss-Kahn attorneys said when Diallo sued in August 2011. Strauss-Kahn later filed a $1 million defamation suit against her.

Neither case has come close to trial.

The Associated Press generally does not name people who report being sexually assaulted unless they come forward publicly, which Diallo did.

© 2012 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
6 Comments Add a Comment
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lollyikens says:
Perhaps he is guilty it sure looks like it but situations like this are always suspect.

On the other hand she could have seen an oportunity to get set for life and not have to be a maid anymore. Maybe he just touched her in an inappropiate way who knows.
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Ulgnud says:
Her past behavior as previously reported definitely puts her credibility in question. But she got what she wanted. Money.
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FormerUSMCSergeant says:
DSK doesn't mind if they are ugly, obviously.....
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WWIIWWII says:
Hope he did not pay her more than the going rate.
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cntrygirl3 replies:
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This is exactly what people will say "false accusal for the money". And another lech goes free to continue to prey on women.
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djseavy says:
Apparently Strauss-Kahn's attorneys can't seem to accept the fact that their client is a rapist and maniac. It's unfortunate the victim muddied the water by fabricating a gang rape story, but she is far from alone in accusing S-K of thinking with the wrong organ. If it was only for financial gain that she instituted the suit, there wouldn't have been a settlement. Furthermore, I view confidential settlements as nothing more than a way to pay off the complainant, without exposing the truth. S-K settled this case with money, and I hope - if all allegations are true - he eventually pays with his freedom.
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