A gay man in his 20s has reached a rare out-of-court settlement with the company he used to work for after a superior revealed his sexual orientation without his consent, people involved in the case said Saturday.

The firm in Tokyo's Toshima Ward apologized and has promised to pay damages for causing mental distress, they said, in a development that many hope will help eliminate discrimination of LGBT people.

Experts on issues related to sexual minorities have pointed out that an out-of-court settlement over damage caused by outing someone is extremely unusual as legal disputes on the matter are uncommon in Japan, where misunderstandings and misconceptions about LGBT people persist.