When it comes to Katie Price – Claire Powell really CAN!

The 18th Annual Elton John AIDS Foundation Academy Award Party!Claire Powell, Katie Price’s former manager has accepted “substantial” undisclosed damages from the star over a slanderous claim that she had an affair with Peter Andre.

Claire, whose company Can Associates Limited still represents Katie’s ex Pete, sued over a comment made on The Graham Norton Show.

Her solicitor said Katie had told Graham, fellow guests Jackie Collins and Jo Brand, and a studio audience of 600 that Claire and Pete had been at it, even though Claire was engaged!

Katie, who was not in court, accepted that the allegation was completely untrue, apologised unreservedly and agreed to pay substantial compensation and Ms Powell’s legal fees.