In December 2019, a former campaign staffer and spokesperson, James Hallinan, accused Lujan Grisham of sexual battery. According to Hallinan, the incident took place during a staff meeting in 2018. By his account, Lujan Grisham poured a bottle of water on his crotch and then slapped and grabbed his crotch through his pants while laughing. He said the incident happened "in front of everybody".[61]
In April 2021, it was publicized that Lujan Grisham and her gubernatorial campaign, while denying the allegations, had reached a $62,500 settlement with the law firm representing Hallinan. The payment was made in monthly installments of $12,500 from November 2020 to March 2021.[62] Her political committee paid another $87,500 over six months, bringing the total payout to $150,000