Elton John accepted an undisclosed financial settlement Thursday of a libel lawsuit against the Sunday Times.

His lawyer, Hanna Basha, said in court that the newspaper had repeated a false rumor that the rocker acted in a self-important, arrogant and rude manner by telling guests at a fundraising ball not to address him unless spoken to.

The 58-year-old singer wasn't in court for the announcement of the settlement over the Sunday Times' report in June.

Times Newspapers Ltd. said it had agreed to pay damages to John, who will donate the funds to the Elton John AIDS Foundation.

"As soon as the defendant found out the story was untrue -- it had been picked up from another newspaper -- it immediately apologized to Sir Elton and it is happy to repeat that apology here today," said the newspaper's lawyer, Alastair Brett.