Express Newspapers, the owner of the Daily Star, has accepted substantial undisclosed libel damages for an "entirely false" story it ran about Grand Theft Auto.
Back in July the paper incorrectly reported that Rockstar was planning a new entry in the series, GTA: Rothbury, based around the exploits of serial killer Raoul Moat.
A solicitor for Rockstar-parent Take-Two today told high court judge Mr Justice Tugendhat that the ludicrous story was published without contacting the game maker for comment, the Guardian reports.
"The defendant now accepts that Rockstar Games never had any intention to create such a video game at any time," she said. "The story was entirely false."
As well as damages, the Daily Star will pay Take-Two's legal costs.