Louis Walsh's lawyer said after today's verdict that the story about his client "should never have been published".
Paul Tweed confirmed that Walsh would be paid damages of more than £400,000 along with his legal costs.
He added that the case highlights the "serious damage that can be inflicted on an individual ... by the publication of totally unfounded allegations which, in the age of the internet, can circumnavigate the globe in a matter of seconds."
More top news
A band of rain will approach from the west today and threatens to be heavy at times.
Drugs mule Melissa Reid was caught smuggling £1.5 million of cocaine out of Peru so she could "boast about it" to friends in Ibiza.
A couple have taken a step closer to bringing a child born in India via surrogacy to their home in the UK.