(CNN) Bryan Singer has agreed to settle a rape accusation against him but denies wrongdoing.

The "X-Men" director is set to pay $150,000 to Cesar Sanchez-Guzman, a man who claims that Singer sexually assaulted him in 2003 when he was 17. Guzman filed his lawsuit against Singer in 2017.

The case became linked to a bankruptcy case Guzman filed in 2014. In a court filing on Wednesday in Seattle, a bankruptcy trustee recommended that the court approve Singer to settle with Guzman in the amount of $150,000 in order to pay back creditors $61,000.

"The debtor filed a claim against Mr. Singer that he had no basis or legal right to file," Singer's attorney, Andrew Brettler told CNN in a statement. "Mr. Singer has denied even knowing this individual, let alone allegedly having interacted with him more than 15 years ago. The decision to resolve the matter with the bankruptcy trustee was purely a business one, as litigation costs would well-exceed the amount requested by the trustee to pay off the creditors who were owed money when the debtor filed for bankruptcy."

CNN has reached out to Guzman's attorney.

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