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World Entertainment News Network had misrepresented the actor's actual words, which were given during an interview with Scottish newspaper The Daily Record in December 2007, London's High Court was told.
In a statement, Smith's lawyer, Rachel Atkins, said the actor believes Hitler to have been a "vile and heinous man."
Atkins called the allegations made in the WENN article "false and without any foundation." She also told the court that the claims had caused Smith "acute embarrassment." WENN agreed to pay the actor's legal costs and an undisclosed sum for damages, which the star intends to donate to charity.
