(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.
Guzman's claims against Singer first became public in January in a report by the The Atlantic. Two men who spoke to the publication, who were not identified by name, claimed that Singer had sex with them while they were underage.
One man, Victor Valdovinos, told The Atlantic he was molested on the set of "Apt Pupil" by Singer in 1997, when he was 13.
In response, Singer's attorney told The Atlantic that the director "has never been arrested for or charged with any crime, and that Singer categorically denies ever having sex with, or a preference for, underage men," according to the publication.
The director is best known for his work on the "X-Men" franchise. His most recent film, "Bohemian Rhapsody," grossed more than $900 million globally, becoming the highest-grossing music biopic of all time. But midway through production he was fired by the film's studio, 20th Century Fox, for repeated absences which forced the studio to continually halt production of the film.
Singer admitted to "creative differences on set" but claimed his departure was because the studio would not allow him to take time away to deal with an ill parent.
He was set to direct an adaptation of the "Red Sonja" comic book for Millennium Films, but in February the studio announced the project is on hold.