Baroness Michelle Mone has settled a High Court claim over racial abuse allegations for over £50,000 on no admission of liability, according to the Mail on Sunday.
Mone, 50, was accused of racial abuse after allegedly calling a man of Indian heritage a ‘waste of white man’s skin’.
The Tory Peer, who made her name running a lingerie empire, claims that she thought Richard Lynton-Jones was white.
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Lawyers of the Glasgow-born businesswoman said that when she made comments made in a WhatsApp message in 2019, she believed that Mr Lynton-Jones was '100% white and British' and that there was 'no trace whatsoever of non-white colouring or any features'.
Lady Mone's lawyers have denied that she was racist.
An investigation was launched in 2021 by the Metropolitan Police, and in January Lady Mone, who founded the lingerie brand Ultimo, winning herself the nickname Baroness Bra, was sued for libel. However, the criminal investigation was dropped.
According to the Mail on Sunday, the 2019 incident stems from a row over the death of a deckhand while Lady Mone and Mr Lynton-Jones were staying on the French Riviera.
Lady Mone was staying on her husband's super-yacht, Minx while Mr Lynton-Jones was staying as a guest on another super-yacht, Vision.
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Vision accidentally ploughed into Minx, striking and killing a British deckhand, 27-year-old Jake Feldwhere.
In a highly emotive group chat between passengers three weeks later, Lady Mone unleashed her fury on Mr Lynton-Jones. She described him as a 'waste of a man's white skin'.
Lady Mone also aimed her messages at Mr Lynton-Jones's fiancee, calling her a 'mental loony' and 'nut case bird'.
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Mr Lynton-Jones, whose mother is believed to be of Indian heritage, demanded at least £200,000 in aggravated damages.
He said: 'I've done nothing wrong apart from being a victim of racism. Racism has no place in this society, let alone for a member of the House of Lords. That's disgusting.'
Lady Mone's lawyers said: "Both parties have settled their differences on a no-fault or damages basis in relation to the alleged racist claim and the matter is now concluded."
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