Dr Desmond Moran has vigorously denied any knowledge of the sexual abuse of the McColgan children and warned against a hasty adoption of mandatory reporting of child sex abuse.
He was accused, along with the North Western Health Board, of not acting to prevent the physical and sexual abuse by their father.
In the settlement announced in court yesterday, Mr Garrett Cooney SC, for the McColgans, said that the case against both defendants had been settled and that its terms would be implemented by the North Western Health Board.
In his press conference afterwards, Dr Moran said "not a penny" had been paid by his side.
He said that not only the McColgan family and extended family had suffered. His family had also suffered during "this very sad case."
He said that he had had no knowledge of the sexual abuse, and said: "I never referred anyone for electro-convulsive therapy, or never threatened to send anyone to Borstal."
He also denied that Joe McColgan was a close personal friend of him or his family. Asked if he knew he was depraved, he said he knew the family was dysfunctional.
Asked if he had said that Gerry needed discipline, he said this had been quoted out of context. He said he would have needed a disciplined life-style, having to get up in the morning and get ready for school.
Warning against rushing to mandatory reporting he said: "We must protect our children. We must protect our families."
Dr Moran broke down as he thanked his family, friends and medical colleagues for the support they had shown him during the trial, and said he was going back to Sligo to pick up his practice and his life.