The settlement, first reported by the Age and independently confirmed by Guardian Australia, involves no admission of fault by the member for Kooyong or the federal government.
All sides have agreed to pay their own legal costs, sources with knowledge of the settlement negotiations confirmed, although parties have refused to comment because a final settlement deed has not been signed.
Rugg is a Melbourne-based LGBTQ+ activist and feminist who played a leading role in the yes campaign during the marriage equality vote in her former position at GetUp, before working as the executive director of Change.org.
Ryan was elected in 2022, ousting the then deputy Liberal leader and treasurer, Josh Frydenberg, from his blue-ribbon inner-Melbourne seat.
