As we first reported Thursday, the State Controller's Office confirmed that it has settled a sexual harassment and discrimination claim for $83,000.

A former employee alleges that she was subject to graphic harassment by the office's former chief of staff.

Today, we are hearing from both sides.

"I think that it's a great opportunity to see some changes being taken in the work place," said Lourdes Matsumoto.

After weeks of back and forth, Matsumoto announced today that she has come to a settlement with the State Controller’s Office.

Matsumoto alleged back in September that while working as deputy legal counsel and an executive assistant, her supervisor and former chief of staff for the state controller, Dan Goicoechea, was inappropriate with her in the office on multiple occasions. Matsumoto said in a tort claim against the office that racial and sexual comments were made to her, about her, and about others.

"I think it is really important that employers do the right thing and they take employee reports seriously and do honest investigations," she said.

The State Controller’s Office declined to talk with us on camera, but did put out a statement saying "In reaching a settlement, the State Controller's Office is not admitting liability but acknowledging a desire by all parties to swiftly address this situation, and to improve moving forward."

The statement continues that the controller’s office is "embracing the opportunity to improve our trainings, our communication with our employees, and in holding people accountable for their actions."

Goicoechea's legal team says the case brought to the table was very thin. They believe it really had little to do with cleaning up a toxic work environment.

"Instead we found out what her true motives were she resigned and filed a claim so she could get money, that's all this was, was a short term money grab," said Rory Jones, Goicoechea’s legal counsel.

In the tort claim, Goicoechea was named as a person of interest, and not as a tort claim defendant. Because of that, his legal team says they were unable to fairly defend Goicoechea's character. They say the accusations against him were way out of context.

"Context is important that context gets lost in the sterile process of filing a tort claim and having a brief negotiation about it," said Jones. "She is skilled, she is a lawyer, she knew what she was doing she initiates a conversation keeps track of what Dan says and throws it all in the hopper and saves it for later on for a time she can make some money talking about it."

Matsumoto maintains, though, that Goicoechea was way out of line. But his defense says others in the office would say otherwise.

"There were a lot of people coming out of the woodwork to support Mr. Goecoechea and the work he had done at the state who wanted to testify on the way they were treated by him, and many of them are female," said Jones.

"Maybe he didn't realize the impact, the severity of this and if he came to terms and does apologize it would mean something I would hope that it means he changed," said Matsumoto.

“What we’re sorry that we said things, or I'm sorry we said things that allowed you to get $80,000 from the state of Idaho that you didn't deserve,” said Jones. “I mean no, he won't be apologizing for that."

KTVB spoke with Dan Goicoechea today, but for now can't officially comment on the tort claim.

His legal team tells us though that Goicoechea liked his job at the state.

They say his boss Brandon Woolf treated him right and that's why Goicoechea resigned, in order to protect his boss.

As for Lordes Matsumoto, she tells us since leaving the controller’s office she has taken a job with a law firm in the private sector. She says she hopes her story will help empower others to speak out against toxic work environments.