Katie Price pays out damages to former manager.
Katie Price's former manager has accepted "substantial" undisclosed damages from the model over a slanderous claim she had an affair with Peter Andre.
Claire Powell sued over a comment made on the Graham Norton show last October.
Her solicitor, Mike Brookes, said Price told Norton, fellow guests Jackie Collins and Jo Brand, and a studio audience of 600 that Ms Powell and Andre had had an affair, even though Ms Powell was engaged to Neville Hendricks, the father of her child.
Mr Brookes told London's High Court the BBC "quite sensibly" edited the accusation from the broadcast but the story was quickly picked up by various tabloid newspapers.
He said: "To be accused of infidelity, with one of her longstanding and high-profile clients, was obviously very damaging and distressing for Ms Powell - the most obvious reason being that the allegation was completely untrue."
Price was not in court but accepted the allegation was completely untrue and apologised unreservedly. She has agreed to pay substantial compensation and Ms Powell's legal fees.
Ms Powell's company, Can Associates Limited, still represents Andre. He divorced Katie last year.
Independent Television News Limited 2010. All rights reserved.
Independent Television News Limited 2009. All rights reserved.
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