Kerry Katona has won substantial damages after a newspaper claimed she had worked as a prostitute prior to finding fame.

The former Atomic Kitten has accepted an undisclosed amount at London's high court after launching a libel action against the Sunday Mirror newspaper.

A story published on Sunday June 22nd - entitled Kerry's Mother Dishes the Dirt in Explosive New Book - had claimed Katona's mother intended to release a book including the claims.

But the tabloid has now printed a prominent apology and admitted that the claim was "entirely false".

Katona's solicitor, David Price said: "The truth is that Sue Katona has never alleged that the claimant worked as a prostitute in the book or at any other time and such an allegation would be entirely untrue.

"Moreover, Sue Katona has not to date written an autobiography nor does she have a publishing agreement to publish such a book."

He added that his client was hurt and embarrassed by the newspaper article and the allegation that her mother was responsible for the claims.

It is believed Katona, 27, has accepted a five-figure sum in damages, while newspaper publishers MGN Limited will also pay her legal costs.

28/07/2008 11:48:52