The ''Smile'' hitmaker was reported to have lashed out against Cole in 2009, while calling Victoria Beckham a 'monster" in an interview with So Foot, reports the Daily Express. She was also said to have branded the former Spice Girl and her footballer husband David a 'sickening" couple.
Lily Allen promptly denied giving an interview to the publication. She has now accepted undisclosed damages from So Foot editors at London's High Court.
Lily Allen"s solicitor Mark Thomson said, "(Allen's) reputation has been vindicated."