Singer Justin Timberlake has accepted "substantial", undisclosed libel damages over allegations that he had a secret fling with a model behind the back of girlfriend Cameron Diaz.
His solicitor, Simon Smith, told Mr Justice Fulford in the High Court in London, that publication of the allegations in the News of the World in July 2004 had caused damage to the performer's "personal and professional reputations".
The article went into detail regarding the alleged sexual encounters which "model and aspiring actress" Lucy Clarkson claimed had taken place between Timberlake and her "despite it being public knowledge that the claimant was involved in a long-term relationship with Ms Diaz at the relevant time".
Mr Smith, who said the singer was donating the damages to charity, told the judge: "The newspaper now accepts that all the allegations complained of are entirely untrue and without any substance.
"Ms Clarkson, who sold her story, accepts that she had not had an affair or fling with Justin Timberlake. She accepts that the story was a complete fabrication."
The article, entitled "Exclusive: Bad News for Cameron as model reveals lover's secret fling. Trousersnake did dirty on Diaz with me (twice!)", contained an interview with Ms Clarkson "who claimed to have been sexually involved with Mr Timberlake when he was touring in the UK to promote his new album, Justified, at the end of 2003 and beginning of 2004".
There were claims that the singer and model went on secret dates over drinks at various exclusive London venues, that he sent her flirtatious text messages, visited her London flat without invitation in the early hours of the morning, and that the relationship finally became sexual in nature in his hotel room after a private party to celebrate his London tour dates.
Mr Smith told the judge that the story Ms Clarkson sold was "something she had fabricated", adding: "She lied to the News of the World."
He said the first defendant in the action, News Group Newspapers Ltd, publisher of the News of the World, "has agreed to pay the claimant a substantial undisclosed sum as damages".
He added: "The second defendant (Ms Clarkson) has, in addition to this, agreed to pay a sum equal to that which she agreed to receive from the News of the World. In turn, Mr Timberlake has decided to donate those damages to a charity of his choosing. Mr Timberlake's legal costs have been reimbursed by the defendants under the settlement. In the light of these developments, Mr Timberlake has decided not to pursue these proceedings and considers that his reputation has been fully vindicated."
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