Councillor Paul Nickerson will pay substantial damages and legal costs to Jeremy Corbyn following a “false defamatory” tweet.
A doctored photo was posted on his account showing the former Labour leader carrying a Remembrance wreath superimposed onto a photo of the Liverpool terrorist blast.
Mr Nickerson was suspended by his council’s Conservative group shortly after, and deleted the tweet and apologised.
Now he has been made to pay damages and legal costs, which will go to charities in Liverpool and in Corbyn’s constituency.
Commenting on the swift settlement of his legal case, Corbyn said: “The bomb attack on Liverpool Women’s Hospital on Remembrance Sunday was a horrific crime, which could have killed or maimed countless victims, including new mothers and their babies.
“Councillor Paul Nickerson’s photoshopped Twitter post about me failed to understand the seriousness of the threat and did a disservice to all those affected by the attack and their loved ones.
“So I welcome his decision to apologise for his defamatory post, to agree not to repeat the tweet which he has deleted and to pay substantial damages and legal costs.
“This substantial settlement will be used to support charities that are close to my heart: including one in Liverpool and one in my constituency.”
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