The family of a Harvard Medical School student who committed suicide last year will receive $1 million in an out-of-court settlement of a suit against his former psychiatrist, assistant clinical professor Dr. Margaret H. Bean-Bayog '65.

Michael Mone, a Boston attorney representing Bean-Bayog, confirmed that settlement papers had been filed in the Middlesex Superior Court yesterday.

The family accused Bean-Bayog of sexual misconduct and of causing the death of their son, Paul Lozano.

Lozano's sister, Pilar Williams, disclosed the amount of the settlement.

The student's family sued Bean-Bayog last year, alleging she had driven him to his death by using an unorthodox treatment to regress Lozano, 28, to the psychological state of a three-year-old. The family also claimed that Bean-Bayog had seduced Lozano, and filed thousands of pages of documents in court as proof, including a set of flashcards she made for him which contained references to "phenomenal sex."

The case garnered national media attention because of the unconventional type of therapy used by Bean-Bayog. At least one Los Angeles production company considered purchasing the film rights to the case.

Bean-Bayog has continued to deny the allegations of professional negligence and sexual misconduct. She justifies her methods, saying that Lozano was delusional, violent and so mentally ill that most doctors would not have agreed even to treat him.

But on September 18 of this year, the day she was scheduled to defend her actions before a state medical board, Bean-Bayog unconditionally resigned her license to practice medicine in the United States.

Mone said that yesterday's settlement involved no admission of guilt on Bean-Bayog's part.

But in an interview with the Associated Press Williams disagreed, saying, "Actions speak louder than words."

Williams said she felt the outcome of the case would prevent other psychiatrists from attempting such radical treatments. "I think it's helped to establish new guidelines of conduct for them in that profession. And that means my brother didn't die in vain," she said.

Mone said the decision to settle had been made by Bean-Bayog's insurance company, the Joint Underwriting Association of Massachusetts, but that the doctor had agreed with it.

"This has been very stressful for her and she's glad it's over," he said.

Bean-Bayog treated Lozano from 1986 to 1990,while he was a student at Harvard Medical School.She acknowledges that her treatment was "uniqueand somewhat unconventional," but says it wasappropriate because Lozano was severely depressed.

Lozano killed himself in Texas in April 1991,three months before he would have graduated fromthe Medical School.

Last May, after Lozano's family filed theircomplaint, the Medical School placed Bean-Bayog onadministrative leave and removed her from allreferral lists.

This story has been compiled using wiredispatches.