LONDON (AP) – Justin Timberlake has accepted an apology and damages from a tabloid newspaper that falsely accused him of cheating on girlfriend Cameron Diaz with a British model.

Timberlake had filed a libel lawsuit at London’s High Court over a July 2004 claim in the News of the World that he had a fling with model Lucy Clarkson.

Benjamin Beabey, lawyer for the tabloid’s publisher, News Group Newspapers Ltd., said Wednesday that the News of the World apologized “for the distress and embarrassment caused by this article. It entirely accepts that the allegations are without foundation.”

Clarkson’s lawyer, David Griffiths, said the model acknowledged that the story was “an entire fabrication on her part.”

“Yet again, a tabloid has been caught lying,” said Timberlake’s publicist, Ken Sunshine, in a statement. “Thankfully the judicial process worked, but how many cases like this will it take before these tabloids feel obligated to print the truth?”

Timberlake’s lawyer, Simon Smith, said the allegations had caused damage to the singer’s “personal and professional reputations.”

He said the publisher had agreed to pay “a substantial undisclosed sum as damages.” Clarkson had agreed to pay “a sum equal to that which she agreed to receive from the News of the World” for her story.

The defendants also had agreed to pay Timberlake’s legal costs, Smith said.

“In the light of these developments, Mr. Timberlake has decided not to pursue these proceedings and considers that his reputation has been fully vindicated,” Smith said.

Sunshine added that Timberlake planned to donate the damages money to charity.

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RALEIGH, N.C. (AP) – Clay Aiken is selling his Los Angeles-area home to return to his North Carolina hometown.

The Raleigh native refused to tell The News & Observer of Raleigh exactly where he’s building his new home.

“Whether this ride lasts for one year or 10 years, I want to have a home base,” said Aiken, 26, the runner-up on “American Idol” in 2003.

The pop star has rarely been at the Mediterranean-style, six-bedroom home he bought last fall for $2.3 million, the Los Angeles Times reported.

The 7,800-square-foot home was new when the singer bought it and rests on more than an acre in a private, rural area of the San Fernando Valley that is zoned to allow horses, the Times said. The house has 6 ½ bathrooms, a swimming pool, a spa, a gazebo and a sports court.

Aiken listed the house in March for $2.5 million and expects to close escrow next month, the Times reported.

Aiken’s mother, Faye Parker, decorated his California home with North Carolina furniture. “All the stuff, curtains, fabrics and whatever else is coming, too,” he said.