A refugee who claimed she was raped by a security guard while detained on Nauru has settled her lawsuit against Wilson Security.
The woman alleged she was attacked and subjected to sexual harassment in 2014 and as a result is suffering ongoing trauma and psychological harm.
She was pursuing Wilson through the Victorian Supreme Court and the matter reached a settlement on Monday.
"I want everyone to know what was happening to women on Nauru and what it was like for us," the plaintiff said in a statement.
She alleged Wilson Security, who was contracted to operate the Nauru Regional Processing Centre at the time, allowed male officers to enter the women's sleeping area alone, where the alleged rape occurred.
The claim further alleged Wilson was aware security guards at the centre were demanding sexual favours from detainees in return for certain items.
"The security guards were placed at the regional processing centre to protect people seeking asylum," Maurice Blackburn Senior Associate Nicki Lees said in a statement.
"Instead, this claim has highlighted the systemic and serious failures in how the processing centre was managed."
Ms Lees acknowledged the plaintiff's bravery for speaking out.

The island of Nauru. Source: Getty Images
"It was never appropriate to house people in off-shore detention facilities. The government outsourced its responsibilities with predictably tragic results," she said.
Wilson Security has been contacted for comment.
The ABC reported on Tuesday the settlement was agreed with no admissions from or finding of guilt against Wilson Security.