Former Penthouse "Pet of the Year" Sheila Kennedy and Guns N' Roses frontman Axl Rose have reached a settlement in a sexual assault lawsuit filed last year. While the specific terms remain undisclosed, the case stemmed from allegations made by Kennedy regarding an incident in a New York hotel room in 1989, shortly after the pair met at a nightclub. Rose has consistently denied the accusations, stating to the media, "As I have from the beginning, I deny the allegations. There was no assault." His attorney, E. Danya Perry, expressed relief at the settlement, noting that Rose has "suffered greatly from this lawsuit" and can now move forward. Kennedy's representatives have not yet offered a public statement on the resolution.

Filed just before the expiration of the New York Adult Survivors Act in 2023, the lawsuit allowed Kennedy to pursue legal action against Rose despite the statute of limitations having passed. This act provided a window for survivors of sexual assault to bring claims forward, regardless of when the alleged abuse occurred. Kennedy's suit claimed that Rose leveraged his celebrity status to "manipulate, control, and violently sexually assault" her. The original complaint detailed allegations of Rose inviting Kennedy to his hotel room, excluding Kennedy's friend due to her appearance, and providing drugs and alcohol to those present. Kennedy described witnessing Rose engage in a sexual encounter with another model that she found disturbing. The lawsuit further alleges that Rose later became enraged, physically assaulted Kennedy, and sexually abused her. Kennedy asserted that the alleged assault resulted in long-lasting emotional, physical, and financial distress, including impacting her career and leading to diagnoses of anxiety and depression.


Prior to the settlement, Rose's lawyer, Alan S. Gutman, vehemently denied the allegations, stating that the incident "never happened" and suggesting that the timing of the lawsuit was strategically aligned with the impending deadline of the New York Adult Survivors Act. He further claimed that Rose had no memory of meeting Kennedy and had not been aware of the accusations until the lawsuit was filed.