Rundle, former Penguin's director of digital publishing and foreign rights, filed case against Penguin for sexual harassment for three years and then an assault by Davidar at the Frankfurt Book Fair in Oct 2008.
The scandal ended quietly on Tuesday, Jul 6 with all the three parties settling the lawsuit and pledging not to divulge anything to the media.
It was not known how much Penguin Canada and Davidar will pay Rundle.
"We can now advise that all allegations have been addressed and all matters resolved to the satisfaction of all parties. None of the parties will be commenting further to the media," said Davidar"s lawyer Peter Downard.
The Indian born Davidar was sent out of Penguin on Tuesday, Jun 8 following the sexual harassment complaint by Rundle.