In a statement provided to the New York Times, Rush firmly denies the allegations, and states that he believes much of the details regarding Stone's stories appear to be misconstrued.
"From the outset I must make it clear that the allegations of inappropriate behaviour made by Yael Stone are incorrect and in some instances have been taken completely out of context," Rush's statement began.
"However, clearly Yael has been upset on occasion by the spirited enthusiasm I generally bring to my work. I sincerely and deeply regret if I have caused her any distress," the actor added. "This, most certainly, has never been my intention."
"When we performed in The Diary Of A Madman 8 years ago, I believe we engaged in a journey as artistic comrades," Rush continued.
"Over the years we have shared correspondence that always contained a mutual respect and admiration," he concluded. "As I have said in the past, I abhor any behavior that might be considered as harassment or intimidation to anyone – whether in the workplace or any other environment."
Rush's statement comes after Stone claimed that he "danced naked in front of her in their dressing room, used a mirror to watch her while she showered and sent her occasionally erotic text messages."
Stone states that she was 25 at the time of the misconduct, and Rush was 59. "I know I have truth on my side," she told the outlet, later stating that "you can see in all of my communications with you that there's an element of terror."
The Australian actress also confessed that the reason she had not come forward before was because Australia's legal system "favors the person with a good deal more money and a good deal more influence and power."
Kate Jenkins, who is the Australian government's sex discrimination commissioner, also spoke to the New York Times, offering support and backing up Stone's assessment of how the courts handle these types of situations.
"The use of defamation cases against women with sexual harassment complaints is having a huge chilling effect," Jenkins said. "Women I speak to all over the country are absolutely adamant that they cannot complain because it risks absolutely everything for them."
Notably, this is not the first time that Rush has faced sexual misconduct claims, as an actress named Eryn Jean Norvill — whom he worked with during the Sydney Theater Company's production of King Lear in 2015-2016 — claimed that he was inappropriate with her as well.