"I am so sorry that I have hurt you, Sean, and I apologize and retract my reckless statements about you," Daniels said in a statement. "How thoughtless of me. You are someone I consider a friend, a brilliant actor and true Hollywood legend and humanitarian."
"I too have been the subject of false attacks by others, like those made here," he continued. "My most important role is as a father, and it is important to me that my children learn that it is wrong to reference gossip as fact, as I did here. That can be very damaging and hurtful."
"[Terrence] ain't done nothing different than Marlon Brando or Sean Penn, and all of a sudden he's some f**kin' demon... That's a sign of the times, of race, of where we are right now in America," The Hollywood Reporter quoted Daniels as saying.
Daniels now says his comments were "cavalier."
"Domestic violence is a very serious issue," he said in his statement on Wednesday. "My comments were cavalier; it was not my intention to diminish the severity of the issue, but rather to express a view regarding the disparate treatment of men of color in our national conversation. I apologize again for the distress that this has caused you and your family."
Penn accepted Daniels' apology, as well as the donation to his charity for an undisclosed amount.
"I accept Lee's heartfelt apology and appreciate the sincerity with which it was delivered," Penn said in a statement. "I also accept and appreciate his generous donation to J/P HRO, which will have a transformative effect on the lives of those we serve in Haiti."
The settlement is surprising, given that Daniels slammed Penn in a legal filing as recently as February, when he moved to strike and dismiss Penn's defamation suit against him, citing First Amendment protections. Daniels' counsel managed to slip in a humorous jab aimed at Penn's iconic Fast Times at Ridgemont High character, Jeff Spicoli.
"Spicoli understands the United States Constitution better than Penn," one footnote reads. "For his final, oral exam in high school history class, surfer-dude Spicoli expounds upon the intent of America's founding fathers: 'What Jefferson was saying was, 'Hey! You know. We left this England place because it was bogus. So if we don't get some cool rules ourselves – Pronto! -- we'll just be bogus, too. Okay?'"
"With fame, money and high-priced legal counsel, Penn has the power to buy most things," the documents read. "Fortunately for Daniels, the First Amendment is not for sale. It protects Daniels and others from lawsuits like this one, financially-draining attacks brought to punish free speech exercised to Penn’s chagrin."