Timberlake, a former member of Nsync, who is in a long-term relationship with 'There's Something About Mary' actress Cameron Diaz, accepted "substantial" and undisclosed libel damages over the allegation that he had a fling with a model behind the back of Diaz.
His solicitor, Simon Smith, told Mr Justice Fulford at the High Court in London, that the story in the News of the World in July 2004 had damaged the singer's personal and professional reputation.
The News of the World article, under the headline "Exclusive: Bad News for Cameron as model reveals lover's secret fling", alleged that Timberlake had slept with Lucy Clarkson who is described as a model and aspiring actress.
Clarkson claimed that the fling had taken place despite Timberlake being involved with Diaz. The story detailed how the singer and Clarkson had enjoyed several dates before spending the night together in a hotel.
"The newspaper now accepts that all the allegations complained of are entirely untrue and without any substance," Smith told the court.
Through her solicitor, David Griffiths, Clarkson apologised for the "distress and embarrassment she has caused the claimant and Ms Diaz".
"She accepts that the story, which she sold to the newspaper, was an entire fabrication on her part and that she had not had an affair or fling with the claimant," said Griffiths.
Timberlake has said he will donate the cash to charity with Clarkson agreeing to pay Timberlake the amount she received from the News of the World.
News Group Newspapers said it entirely accepted that the allegations were without foundation.
The win comes as Timberlake launches his own clothing label. He has teamed up with friend Trace Ayala to create a range of clothing described as "country chic".
"This clothing is representative of where we come from - it's sort of country, but it's also got a little edge and a little chic to it," Timberlake said.
The clothing line is to be called William Rast - after his grandfathers.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the
.jpg)
.jpg)