Here is what I expected to read when I saw the title of this question. IANAL and IANAW (writer), so this won't sound like legalese.

Stack Exchange and Monica Cellio have resolved their differences. Both sides have seen what a waste of time and resources it is to battle over something that started relatively insignificantly. It was in the best interest of both Stack Exchange and Ms. Cellio to settle, so both parties agreed on a settlement. While we and Ms. Cellio cannot comment on many specific details of the settlement, the following is what Stack Exchange is releasing publicly per terms of the settlement.

Ms. Cellio is hereby reinstated as a moderator on all Stack Exchange sites on which she was previously a moderator. Stack Exchange did not follow our own previously established process, and a lot of hurt has occurred either directly or indirectly because of our actions. For this we are truly sorry. We hereby retract all defamatory statements made to the press about Ms. Cellio. By now you should be able to find an article online in the press about this retraction using your favorite search engine.

Stack Exchange welcomes all positive, constructive criticism, and expects active users to ask for clarification if our communication is unclear. Ms. Cellio did not break any of our rules, even if we previously mistakenly judged it differently. She as well as we fully support inclusivity and everyone's combined effort to make everyone, regardless of gender, sexual orientation, ethnicity, nationality, age, religion, or physical disability feel welcome and comfortable posting and contributing to all Stack Exchange sites.

While the Code of Conduct expects users to use proper pronouns upon request, Stack Exchange does not expect a user to know the pronouns of another specific user when not told first. While Stack Exchange recognizes that there are many different, varied opinions on the legitimacy of such neopronouns, users are expected to use them when using a third-person singular pronoun as stated on a post. Users may respectfully disagree, but if a user needs to respond on a post referring to a user with pronouns stated on that same post, then that user should comply. No user shall be punished, either with de-modding or suspension, for disengaging, for avoiding any pronoun, or for using a gender-neutral pronoun. Use of neopronouns does not necessarily mean that the user implicitly condones these neopronouns, but it does show respect for the referred user. The bottom line here is that we expect all users to treat each other respectfully.

Both Stack Exchange and Ms. Cellio fully support those users who identify with the Lavender community in ensuring that they feel as comfortable as any other user when posting on Stack Exchange sites.

Per the terms of the settlement, there were damages awarded, although neither Stack Exchange nor Ms. Cellio are at liberty to discuss the amount. Both Stack Exchange and Ms. Cellio have agreed to donate any leftover funds previously designated for legal costs to charities benefiting lavender causes.

Stack Exchange realizes that while most users may not even be aware of this situation, many long-time, long-contributing users feel that trust has been greatly damaged, even beyond repair. While we respect those feelings, starting NOW we intend to earn that trust and respect back. Lately we have increased our Meta interaction, specifically addressing concerns the community has brought up, from both years ago and recently. We understand if many never want to return, but we appreciate those have respectfully called for the right actions -- respect, civility, constructive criticism, transparency, honesty, and integrity.

As part of this, Stack Exchange will be more transparent with our actions and business decisions. While we reserve the right to make changes without consent, we will at least discuss changes that affect the community in a non-negligible way. After all, the community makes Stack Exchange possible. There are many that may not believe the preceding statements, but we believe that this is the first of many necessary steps that we will take to regain trust and improve relations between Stack Exchange and the community.