Actress Nicole Kidman, the face of Chanel No.5, will donate the substantial damages she has won over claims of snubbing the perfume by flaunting a bottle of a rival fragrance, to charity.
Kidman's solicitor, John Kelly said that the actress intends to donate the substantial undisclosed damages to UNIFEM, the United Nations Development Fund for Women.
The 40-year-old actress was not present at London's High Court for the settlement of her libel action against The Daily Telegraph.
Kelly told Justice Gray that the 'Hours' actress had gone through a lot of embarrassment and distress over the story, which appeared last month.
The newspaper's Spy column wrongly alleged that while promoting her new film 'The Golden Compass' in London, the Oscar winning actress slighted Chanel by flaunting a bottle of Jo Malone in front of the paparazzi and was keeping her "favourite perfume", close at hand.
It also falsely declared that even after having signed a multi-million pound contract with Chanel, the actress was openly promoting a competitor's product and "kept dabbing" on the perfume whenever she had a moment.
Kelly said that according to the story it meant that Kidman had acted in an unprofessional and disloyal manner by snubbing Chanel, had breached the terms of her contractual obligations and had proved she could not be trusted to honour them.
He added that Telegraph Media Group Ltd now accepted that the allegations were wrong and, this proved that the source of the article had invented the story.
The newspaper has consented to pay Kidman her legal costs and considerable undisclosed damages.
The newspaper's solicitor-advocate, David Price, apologised on its behalf.