The town of Tisbury has settled out of court with a former town police sergeant in her federal lawsuit alleging harassment and retaliation on the basis of her sexual orientation and race.

According to a settlement agreement provided to the Gazette by the town on Wednesday, Kindia Roman has agreed to dismiss her lawsuit in exchange for a $240,000 payment from the town’s insurance company.

In addition to dropping all claims, Ms. Roman has also agreed to not make any disparaging statements about the town, its former police chief Mark Saloio or police Sgt. Max Sherman, all of whom were named in her original lawsuit.

Tisbury is admitting to no wrongdoing in the settlement, according to a statement from town administrator Jay Grande.

“The town and Ms. Roman, through counsel, participated in mediation before a senior federal district court judge, who strongly recommended settlement as compared to protracted litigation,” Mr. Grande said in the statement.

“While we believed strongly in the town’s defenses and believed the facts, as we understood them, to be favorable to the town, we concluded that settlement was the best course of action for the town and the police department,” it also said.

Ms. Roman, who worked for the police department from 2014 to 2018 and was named a sergeant in 2016, filed the lawsuit in federal court in late 2020.

This marks the second out-of-court settlement for the town in the past two years involving former police department employees.

In 2020, the town settled with former police Lieut. Eerik Meisner for $400,000. Mr. Meisner, who was demoted and then fired from the department in January 2019, sued the town in federal court, claiming that he had been wrongfully terminated after he conducted an investigation into the department’s treatment of Ms. Roman.