David Jones has said that is has managed to reach to a settlement with Kristy Fraser-Kirk, the worth of which is 850,000 Australian dollar.

The luxury department store has agreed to pay the amount to Kristy who had earlier filed a suit against retailer and former CEO of David Jones, Mark McInnes demanding 37 million Australian dollars. She had said that the CEO had sexually harassed her and she even called Mark an ouster.

Meanwhile, the 850,000 Australian dollars includes all the legal costs and expenses that the company had to pay Kristy. Most of the money for the payment has been done by David Jones and some of it has also been given by Mark, the company said in its statement.

Kristy's lawyer had said close to 11 claimants were going on and will be joining the case against Mark and David Jones. But, in a statement given later, the lawyer said that both the parties had agreed to go for an out of the court settlement.

Mark was forced to resign in June when he admitted that his behavior was "unbecoming of a chief executive to a female staff member" during two of the official company functions that had taken place earlier.