COEUR d’ALENE — Former Kootenai County deputy prosecutor Kenneth Stone was rehired this month after he was terminated on March 25, 2011.

Stone filed a lawsuit in federal court against the county and Prosecutor Barry McHugh’s office, claiming he was wrongfully terminated. He said he was pushed out because of his age and for refusing to take a psychosexual examination.

Stone, 70, said in his lawsuit that psychosexual evaluations are reserved for heinous sexual predators.

The county and Stone reached a resolution of the dispute last month, and now the lawsuit has been dismissed.

A confidential monetary settlement was reached and approved by the parties.

Kootenai County Prosecutor Barry McHugh directed questions to lawyer Peter Erbland, who represented the county in the case.

Erbland declined to discuss the monetary settlement.

“That’s part of the process and what was agreed to,” Erbland said Thursday. Stone’s official re-hire date was Dec. 16.

As part of the settlement, Stone was returned to his position with full salary and benefits, and will retire upon vesting in the Public Employee Retirement System of Idaho.

In a statement, the county said, “Kootenai County wishes the best for Mr. Stone and his wife, Saviraj Grewal.”

Stone couldn’t immediately be reached for comment Thursday. Grewal, who also is an attorney, did return a call but wasn’t able to comment further. Their primary residence is in Sandpoint, though currently they are staying in Coeur d’Alene at a family member’s home.

Initially, Stone informed the prosecutor’s office he intended to retire in August 2011. However, in October 2010, he said he planned to stay on as long as he was able.

On Jan. 12, 2011, Jim Reierson, another deputy prosecuting attorney, “accused Stone of unwanted shoulder touching,” Stone’s complaint in federal court said.

“It is upon (Stone’s) information and belief, that upon learning that Stone intended to continue working beyond retirement age, the prosecutor’s office began building a pretext for Stone’s termination,” according to the complaint.

Prior to working in Kootenai County, Stone was employed in Bonner County.