Oz mag admits untruth, so Cruz settles suit

Legal costs, donation paid; retraction, apology printed

SYDNEY — Penelope Cruz has settled her defamation suit against Australian magazine New Idea after the mag admitted a cover story in its March 8 edition was untrue.

Article alleged the thesp had written to her family admitting to an affair with an unnamed Spanish actor after she began a relationship with Tom Cruise and as a result had postponed her plans to marry Cruise.

New Idea agreed to publish a retraction and apology, pay Cruz’s legal costs and donate $A5,000 ($3,200) to a charity nominated by her.

“All of these allegations were completely untrue,” said Michael Bradley, a partner with Gadens Lawyers, which repped Cruz. “The alleged letter never existed.”

He added, “Ms. Cruz is obviously disappointed she had to issue court proceedings in order to achieve this result but is very pleased New Idea has now accepted that the story about her was a fabrication and apologized to her. She feels strongly that her personal reputation was damaged by the article and that it was important to take whatever steps were necessary to correct the record.”