Virginia Giuffre has dropped her lawsuit against a Harvard Law professor who she previously claimed was among the men Jeffrey Epstein trafficked her to for sex.
The 39-year-old campaigner, who accused Prince Andrew of sexual assault, said she “may have made a mistake” in saying Epstein trafficked her to former professor Alan Dershowitz two decades ago.
She added she had been young at the time and was in a “very stressful and traumatic environment”.
Ms Giuffre sued Mr Dershowitz in 2019 and accused him of defaming her by denying her claim, prompting him to countersue her for defamation.
Both sides have now agreed to drop their respective claims and waive any appeal in a joint filing in a Manhattan federal court.
Mr Dershowitz, 84, said in a statement: “Ms Giuffre is to be commended for her courage in now stating publicly that she may have been mistaken about me.”
The American lawyer had previously represented Epstein in a 2008 non-prosecution agreement with federal prosecutors in Florida.
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In that year, Epstein, a now disgraced billionaire financier with links to the rich and famous, pleaded guilty to a lesser prostitution offence and served 13 months in a county jail with leave during the day, as well as registering as a sex offender.
Epstein’s 2008 agreement ignited fresh scrutiny following a 2019 Miami Herald investigation.
Manhattan federal prosecutors filed sex trafficking charges against Epstein in July 2019. The following month, he was found dead by suicide in his Manhattan jail cell at the age of 66.
Ms Giuffre alleged she was trafficked by Epstein to have sex with Andrew when she was 17.
The Duke repeatedly denied the claims and was not charged with any criminal offences.
Mr Dershowitz is also known for helping defend US football star OJ Simpson against murder charges and former US President Donald Trump in his 2020 impeachment trial.