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Russell Brand has accepted damages over claims that a girl was drugged and raped during a party at his flat.
Paul Fox, the 32-year-old comedian's lawyer, told the High Court in London that the Daily Star had implied that Brand was responsible for the alleged rape.
Brand issued a press statement denying any involvement in the alleged rape on the same day as the story was published. He proceeded to demand an apology from the Daily Star by solicitor's letter, but the newspaper only agreed to apologise after Brand decided to take legal action in November.
The newspaper has now agreed to pay Brand's legal costs and a substantial sum to compensate him for damage to his reputation.
Fox said: "In these circumstances, Mr Brand feels that he has been vindicated in proceedings. It was necessary for him to bring and is content to let the matter rest."
Nicole Patterson, the Daily Star's lawyer, said: "The defendant regrets publishing the article and its initial refusal to apologise. The defendant offers its sincere apologies to Mr Brand and is pleased that the matter is now amicably resolved."
