We previously reported on a former staff involved with Japanese indie studio Area35, who accused Project Phoenix and Tiny Metal director of embezzling Kickstarter money from the former to fund the prototype for the latter, which also saw a run on Kickstarter.

Now, we’ve learned (via USGamer) this accusation led to a lawsuit, which included aforementioned director Hiroaki Yura and the accuser, former PR manager Tariq Lacy. Said lawsuit has now been concluded, with a settlement being made and Lacy retracting his claims – while also making a public apology.

Here’s his full apology:

On November 20, 2017 (Heisei 29) I posted the entry “Comments” to the AREA 35 Co., Ltd. (Representative Director Yura Hiroaki) operated Facebook page entitled “Project Phoenix”, at a point in time after my own departure from that same company. In regard to this entry, and with the exception of the fact that I was employed by the company until two months prior to the posting, I now admit that everything it stated was contrary to the truth, and I offer a deep and profound apology to AREA 35 Co., Ltd.

Furthermore, I also apologize for significant damage caused to AREA 35 Co., Ltd., and damage caused to the good name and reputation of Mr. Yura Hiroaki, due to such occurrences as the falsehoods that I posted being picked up and reported by media organizations within the United States of America.

I am fully aware that my actions also relate to the trust placed in the videogame industry, and that they must have been very shocking for everyone involved in said industry.

Please allow me to apologize again for my actions.

The original “comments” or accusation were promptly deleted after the original spat came about and was being reported on. At the time of the original debacle, when Lacy accused Yura of embezzlement, Yura denied the claim and fired back with an accusation of sexual harassment from Lacy.

Now, as per the Tokyo court order, Lacy has admitted his original claims are “contrary to the truth” and he agreed “to apologize to the complainant company,” as previously mentioned.

The court order also notes Lacy agreed to pay 410,661 yen (~$3,700) to Masamichi Eguchi, vice president of Area35 and guarantor of Lacy’s rent agreement. Area35 also acknowledges its obligations to pay Lacy 600,000 yen (~$5,400) as part of a previous contract agreement.

With the payments made and the public apology made, both parties agree per the court that no further obligations are still lingering with this legal matter.

Project Phoenix raised over $1 million in crowdfunding back in 2013, and it hasn’t really seen a substantial release or any semblance of a release window since then. While the game is still in limbo, Yura previously noted the game still isn’t completely dead.