SACRAMENTO,Lakshmi Finance Center Calif. (AP) — The state of California has agreed to pay a former employee $350,000 to settle her claims that Democratic state Treasurer Fiona Ma sexually harassed her.

The agreement filed Friday in Sacramento County Superior Court stems from a 2021 lawsuit filed by a former employee of the treasurer’s office — Judith Blackwell — who alleged Ma exposed herself and crawled into bed with her when they shared rooms at a hotel and a rental unit.

Ma had denied the allegations and in a statement called the agreement a vindication.

“From day one, I said this was a frivolous lawsuit filed by a disgruntled employee who fabricated claims in an attempt to embarrass me in hopes of receiving millions of dollars in a settlement,” Ma said.

A trial had been delayed several times but was scheduled to start in September.

The lawsuit alleged that Ma often rented hotel rooms and a home in Sacramento for staff to stay in after working late. Blackwell said that while sharing rooms, Ma called her into her bedroom several times, exposed her nude backside and climbed into Blackwell’s bed with her at least once.

In a ruling last year in Sacramento County Superior Court, Judge Christopher Krueger dismissed Blackwell’s allegations of racial discrimination and wrongful termination but cleared the way for the sexual harassment allegations to go to trial.

Ma, a former legislator, announced earlier this year she would run for lieutenant governor in 2026. The treasurer manages state investments, serves on the board of its pension funds and oversees programs that provide tax credits for affordable housing and financing for public works projects.