Tim Parlatore, a lawyer for the Fox News star, said in the statement that Hegseth settled in December 2020 only because he feared his career would suffer if her allegations were made public. Parlatore said Hegseth was the victim of "blackmail" and "false claims of sexual assault" by an unidentified woman after a Republican women's convention in California on Oct. 7, 2017.
"Knowing that it was the height of the MeToo movement and any public accusation would result in his immediate termination from Fox, Mr. Hegseth ultimately decided to enter into a settlement for a significantly reduced amount," according to the statement.
In Parlatore's telling, Hegseth met the woman an event afterparty, where he became "visibly intoxicated." The woman "led him by the arm to his hotel room" where the two engaged in a "consensual sexual encounter."
"The complainant was the aggressor in initiating sexual activity," Parlatore wrote.
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As ABC News has previously reported, the woman filed a police report days later but no charges were filed. Two years later, according to Parlatore, the woman "began to make noise about filing a lawsuit against Mr. Hegseth." Her co-workers "warned us of the threat," prompting Hegseth and his legal team to send her a cease-and-desist letter.
Parlatore did not reveal the amount of the settlement.
According to The Washington Post, Parlatore's statement -- which was first reported by the newspaper -- came after a friend of the alleged victim sent a memo to Trump transition officials last week drawing their attention to the incident.
The memo, which ABC News has not obtained or reviewed, reportedly said that the woman -- who was described by the Post as a then-30-year-old conservative group staffer -- was responsible for ensuring that Hegseth made it back to his hotel room at the end of the night.
In a post on X [linked], Trump's team said the president-elect is standing by Hegseth.
"Mr. Hegseth has vigorously denied any and all accusations, and no charges were filed," Stephen Cheung, Trump's communications director, said. "We look forward to his confirmation as United States Secretary of Defense."
Trump's team has not replied to ABC News' request for comment. The person who sent the memo to the transition team did not respond to requests for comment from The Post.
According to the memo, two other women summoned her over when Hegseth became "pushy about his interest in taking them upstairs to his room."
After the two other women left, the woman "didn't remember anything until she was in Hegseth's hotel room and then stumbling to find her hotel room." The next day, she "had a moment of hazy memory of being raped the night before, and had a panic attack," the memo read.
The woman then went to an emergency room where a rape-kit examination "was positive for semen," the Post reported the memo said.
Monterey city officials said in a statement that police investigated a "sexual assault" that allegedly occurred in the early morning hours of Oct. 8, 2017, at a Hyatt Regency. The incident did not involve a weapon, but the victim allegedly suffered "contusions to right thigh."
Hegseth is not identified in the city's statement as the alleged assailant. The victim's name and age are listed as "confidential."
A police report was filed days later, on Oct. 12. A Monterey Superior Court spokesperson told ABC News on Thursday there no records on file with Hegseth's name as a party.
The video in the player above is from a previous report.