Melbourne has settled out of court with former president Glen Bartlett and said there was no basis for drug use allegations against coach Simon Goodwin.
The announcement represents two major steps forward for the embattled AFL club as it tries to end more than 12 months of turbulence on and off the field.
The Demons, Bartlett and his partner Victoria Laspas released a joint statement late on Thursday night after several weeks of mediation.
The AFL is also set to put out a statement on Friday about Bartlett.
Bartlett was president from 2013 until he left the club in April 2021.
The following year, he initiated the legal action against members of the club board, following comments about the end of his presidency.
"The parties recognise that the last three years of dispute have been a difficult and stressful time for all and acknowledge that the matter could have been handled differently," the statement said of the confidential settlement.
"All parties are sorry for the hurt that has been caused.
The board acknowledges and thanks Glen for the important role he played as president … Glen is proud of the improvements he introduced to the club as president."
The statement went on to address "serious allegations" about Goodwin and social drug use that were investigated while Bartlett was president.
"It was found that the allegations were false and had no basis in fact," the statement said.
"These allegations have caused enormous hurt and pain for Simon and his family for which all parties are deeply sorry.
"This brings these matters to an end for all time. Simon Goodwin is a highly regarded and respected Demons premiership coach."
The allegations became public in the wake of Goodwin coaching the Demons to their drought-breaking 2021 flag.
On-field, the Demons missed the top eight this season after straight-sets exits from the 2022 and '23 finals series.
There has been ongoing speculation about the future of star on-baller Clayton Oliver at the club.
The future of fellow midfielder Christian Petracca was also uncertain after his season-ending injuries this year, before he re-committed.
Angus Brayshaw, another key player, retired prematurely before the start of the season because of concussion issues.
Since the end of Melbourne's season, Bartlett's successor Kate Roffey and chief executive Gary Pert have resigned.
AAP