Smith said the article alleged that his client, who is the girlfriend of singer Justin Timberlake, and Nickerson were seen stopping behind bushes in Santa Monica, California.

"A headline appeared on the front page of the Sun on 12 May 2005 which sensationally posed the 'Riddle of Cameron's 3-min snog with a pal... and it wasn't Justin: see page 9'," Smith said.

Smith said the Sun newspaper now accepted the incident "involved no more than Ms Diaz giving a friend a goodbye hug and any suggestion of a romantic involvement is entirely untrue and without any substance whatsoever."

The lawyer said the publication of the article had damaged Diaz's personal and professional reputation and had caused distress to her, Timberlake, Nickerson and his wife.

The Sun apologized to the Hollywood star and accepted the allegations were unfounded and should not have been published.

Source For Full Article : http://today.reuters.com/news/NewsArticle.aspx?type=entertainmentNews&storyID=2005-07-29T132120Z_01_N29431179_RTRIDST_0_ENTERTAINMENT-DIAZ-DC.XML

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