A gay lawyer who sued Sullivan & Cromwell, one of America’s most prestigious law firms, over allegations of discrimination has settled his case.

Aaron Charney, 28, accused the firm of systematically discriminating against him because of his sexual orientation in a lawsuit filed in January.

Sullivan & Cromwell today confirmed the two parties had “resolved their differences in connection with all pending disputes between them", but declined to comment further.

The confidential settlement ends a dispute that has fascinated New York’s legal community for almost a year.

Mr Charney, a fourth-year mergers and acquisitions associate, claimed unspecified damages over claims he was subjected to "lewd and illegal conduct" while working at Sullivan & Cromwell’s New York office.

The lawsuit gave several examples to support this claim including an incident where Mr Charney alleges that a senior partner threw a file at his feet before instructing him to "bend over and pick it up” before adding, “I’m sure you like that."

Elsewhere in the 48-page complaint, Mr Charney alleged that he was accused of conducting an "unnatural" relationship with another male employee after the two regularly ate lunch together.

Sullivan & Cromwell, renowned for its huge roster of corporate clients, immediately denied the allegations and counter-sued Mr Charney accusing him of leaking confidential firm documents to The Wall Street Journal.

Mr Charney, who at one point ran a website carrying details and updates on his case, was dismissed from Sullivan & Cromwell shortly after filing his complaint.

The case attracted huge attention in New York because as well as addressing the emotive issue of sexual equality on Wall Street, it was extremely unusual.

A handful of secretaries and other support staff have sued major law firms for discrimination but it is virtually unheard of for junior lawyers to attempt similar claims because of the effect they are perceived to have on their future employment prospects.

Mr Charney could not be reached for comment. He has previously told US newspapers that he had not ruled out returning to the firm.

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