The 42-year-old actress is one of the most prominent voices of the #MeToo campaign, after accusing Harvey Weinstein of rape.
According to the New York Times, Argento settled the notice of intent to sue by Jimmy Bennett – now 22 years old – for $380,000 (£298,000) last October.
Bennett alleges in the notice that he had sex with Argento in a hotel in California in 2013 when he was 17 and Asia was 37; the age of consent in California is 18.
Bennett – who played Asia’s son in the 2004 film The Heart Is Deceitful Above All Things – alleged in the filing that the incident was so traumatic that it ‘hindered his work and income and threatened his mental health’.
He asked for $3.5 million (£2.7m) in damages for the ‘intentional infliction of emotional distress, lost wages, assault and battery’.
The actor claimed that his income has dropped to $60,000 (£47,000) a year after making more than $2.7 million (£2.1m) in the five years before the alleged incident with Argento, which he attributes to the trauma following the alleged encounter.
The New York Times reports that Argento’s lawyer Carrie Goldberg handled the settlement.
Last October – shortly after the alleged settlement was made – Argento accused Harvey Weinstein of sexually assaulting her in the 1990s via a New Yorker article by Ronan Farrow, and said she had consensual sexual relations with him over the next five years.