The claims are reported to have left Beatrice and Eugenie “devastated.”
“It’s been quite difficult for them,” a family friend told the Telegraph.
“I don’t think anyone has ever truly understood how difficult it is for any youngster to be subjected to that degree of scrutiny and exposure.
“But now that they have their own children, the family unit is more dispersed than it used to be.”
Ms Giuffre claimed she was trafficked by Andrew’s friend Jeffrey Epstein to have sex with the royal when she was 17 and considered a minor under US law, which the Duke has always rejected.
Earlier this week, it was revealed that the Duke and his accuser had reached an agreement.
Although the parties have settled the lawsuit, Andrew’s consent does not constitute an admission of guilt.
An attachment to the letter announcing the settlement provided brief details of Andrew and Ms Giuffre’s agreement but noted that the amount would not be released.
It said: “Virginia Giuffre and Prince Andrew have settled out of court.
“Following Ms Giuffre’s receipt of the settlement, the parties will file a specified dismissal (the sum of which is not being disclosed).
“Prince Andrew plans to make a significant contribution to Ms Giuffre’s organisation in support of victims’ rights.
“Prince Andrew never intended to cast aspersions on Ms Giuffre’s character, and he recognises that she has suffered as a long-standing victim of abuse as well as as a result of unwarranted public insults.
“Jeffrey Epstein is known to have trafficked a large number of underage girls over a long period of time.
“Prince Andrew regrets his relationship with Epstein and applauds Ms Giuffre and other survivors for their courage in standing up for themselves and others.
“He commits to show his contrition for his involvement with Epstein by supporting the battle against the ills of sex trafficking and the victims of sex trafficking.”
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