Model Katie Price and husband Peter Andre accepted substantial damages and a public apology over a claim that they were shocking and uncaring parents.
The couple will donate half the sum, which they would not reveal, to the NSPCC and the Vision Charity, and the other half into a trust fund for their children - Junior, Princess Tiaami and Harvey.
Ms Price, 30, who found fame as Jordan, and 35-year-old Andre sued News Group Newspapers over an exclusive expose in February based on an interview with former nanny Rebecca Gauld.
Solicitor Mike Brookes told Mr Justice Eady at London's High Court: "In general terms, the article portrayed the claimants as shocking and uncaring parents who put their own needs above those of their children, and who are so reckless that they even endanger their children's health and welfare."
The newspaper's solicitor, Joanna Workman, apologised and accepted that the allegations were untrue, and that the couple were decent and responsible parents, who loved and cared deeply about their children.
After the brief hearing the couple emerged hand in hand from the Royal Courts of Justice into the rain where dozens of photographers awaited their arrival.
The smiling pair hugged and kissed before raven-haired Ms Price, wearing a white ruffled blouse, slim-fitting black trousers and a diamante belt, read out a prepared statement.
Deeply-tanned Mr Andre, wearing a black suit and black open-necked shirt, stood at her side as she said: "Pete and I love our kids and would do anything for them.
"Anyone who has kids can imagine how it would feel to be accused publicly of being bad parents. We came here today to see that justice was done and that our names were cleared.
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"Now that the paper has accepted the story wasn't true, apologised to us, and paid us damages and our costs, we believe the record has been set straight and our names have been cleared."
