A sexual harassment lawsuit brought by three former employees of the Madison Hotel against the upscale hotel's operations manager was settled yesterday.

The suit against Winston Wlodawsky, which was scheduled to go to trial yesterday in the courtroom of U.S. District Judge Harold H. Greene, was part of a $13 million lawsuit for sexual harassment and discrimination that had been brought against Wlodawsky and the hotel's owner, Marshall B. Coyne.

The plaintiffs settled with Coyne late Friday. Both settlements still must be approved by the court.

The suit alleged that Wlodawsky sexually harassed female employees of the hotel on numerous occasions, including incidents in which he allegedly exposed himself to a hotel telephone operator and invited an employee to join him for dirty movies and drinks in a Madison hotel room.

When employees of the hotel reported Wlodawsky's behavior to Coyne, the suit alleged, the hotel's owner failed to discipline Wlodawsky and instead fired female employees who complained.

Wlodawsky and Coyne denied the allegations. Nine months after the alleged harassment, Coyne fired Wlodawsky.

Attorneys for both sides yesterday declined to comment on specifics of the settlements. Attorneys for the plaintiffs said they were satisfied with the settlement. Attorneys for Coyne declined to comment.

"Wlodawsky maintains that the allegations were untrue, that they were concocted for the purpose of getting money," said his attorney, Richard Huber.