A group of seven players spent the bye weekend at an apartment complex in the resort town. Their rowdy Friday evening led to police being called on Saturday morning following complaints about the noise.
Highlanders assistant coach Tony Brown said the incident had been addressed and the side was focused on its match against the Blues at Forsyth Barr Stadium on Sunday.
"We’ve moved on from that.
"The boys obviously let themselves down and the team down, so they’ve got a big job this weekend to make it up to the team," he said.
The players involved in the incident were not named and will not be stood down from any rugby. They have received individual sanctions but those penalties are being kept in-house.
Games against the Blues hold a special significance for Brown.
"For us this is always a special game — playing for the Gordon Hunter Memorial," Brown said.
"A lot of our focus early in the week has been about him and learning what he was about as a man and how much everyone loved playing for him.
"For myself, obviously Gordie picked me as a 20-year-old back in ’95. Around that time everyone just loved Gordie."
Hunter was a former All Blacks selector and assistant coach. He coached Otago from 1992 to 1995 and both the Highlanders and the Blues.
Hunter died in Dunedin in 2002 at the age of 52.
Brown revealed former All Black winger Nehe Milner-Skudder might not be sighted in a Highlanders’ strip this season.
"Milner-Skudder is starting to get into some full-contact stuff with us but he’ll still be a couple of weeks away. Hopefully he’ll play a bit of club rugby in the near future."
With just three weeks remaining in Super Rugby Aotearoa, his debut looks more likely in the second year of his contract with the franchise.
“I think Nehe's got to prove himself that he's good enough to play at this level. Obviously in the past he has been, but he’s been out a long time.
"If the signs are good he might potentially make it for that last game."
Brown said the Highlanders were mindful he has not played since 2018 when they contracted him.
Ideally, they had hoped to see him in action a month or so ago but they needed to be confident he was fit before he took the field.