But Bauer Media appealed and the Woman's Day publisher had a major win on Thursday.
Wilson won a Victoria state Supreme Court jury trial ruling that German publisher Bauer Media defamed her in a series of articles in 2015 claiming she lied about her age, the origin of her first name and her upbringing in Sydney.
The star of three "Pitch Perfect" movies and "Bridesmaids" won AUS$4.6 million (US$3.5 million) in damages from the German publisher past year after a court found a series of articles accusing her of lying about her age, name and childhood events had cost her roles.
Having now appealed the amount of money they were forced to pay, a court has now ruled that Bauer Media will only need to pay A$600,000 (£338,000). In both June and September, she tweeted that she would be endowing the money on charity, scholarships, and in support of the Australian film industry at large.
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It was the largest defamation win in Australian legal history and Bauer appealed, arguing the size of the settlement set a unsafe precedent and there were errors of law in the judgement. The legal process has run its course and Bauer welcomes the court's decision to set aside the entire award of damages for economic loss.
The Court of Appeal also reduced Wilson's non-economic losses from $650,000 to $600,000.
Speaking on behalf of Bauer Media, general counsel, Adrian Goss, said: "It was important for us to revisit the award of damages".
A summary of the Court of Appeal's judgement said: "For a considerable number of reasons, the critical inferences drawn by the judge could not be upheld".
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Wilson is overseas at the moment, so she has yet to comment on today's decision.
The actress she won her defamation case against Bauer Media in September past year. Bauer Media immediately said it would appeal the record-breaking payment.
But the Court of Appeal said there was no basis for her to receive financial damages for the potential loss of roles.
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