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Katie Price has paid substantial undisclosed damages to Claire Powell after she made false allegations that her former manager had an affair with her former husband Peter Andre.

Powell filed a legal suit against Katie, who divorced Andre in October 2009, after the British celebrity made defamatory remarks on BBC One’s ‘The Graham Norton Show.’

According to Mike Brookes, Powell’s solicitor, Katie told Norton, guests Jo Brand and Jackie Collins, and 600 live audiences that his client had an affair with Andre, though Powell was engaged to the father of her child, Neville Hendricks.

Brookes told Justice David Eady at the High Court of London that BBC ”quite sensibly” edited the allegation from the broadcast but it was immediately picked up by several tabloid newspapers.

“To be accused of infidelity, with one of her long-standing and high-profile clients, was obviously very damaging and distressing for Ms Powell – the most obvious reason being that the allegation was completely untrue,” Brookes said.

He said Katie admitted that her allegation was not true, unreservedly apologised and agreed to pay her client’s legal fees and substantial compensation.

Powell had issued proceedings against Katie to clear her name and ask for damages for the "substantial distress and embarrassment" caused by the remarks, he said.

Katie’s lawyer Keith Ashby said, "She greatly regrets what has happened, and joins in the making of this statement in order to assist in setting the record straight."

Outside the court, Powell said, "I'm just glad it's been sorted.



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