GLASGOW MP Natalie McGarry said she made a "serious mistake" after branding a pro-union campaigner a holocaust denier.
The former SNP politician issued a statement on Twitter this morning, admitting she had been wrong and said there was "no truth" to her previous statements.
She wrote: "On March 6th I tweeted that the Scotland in Union was headed by an 'internet troll' and an 'outed holocaust denier'.
"I made a serious mistake and accept there is no truth to those statements and apologise unreservedly to Mr Cameron for any distress caused."
— Natalie McGarry MP (@NatalieMcgarry) May 9, 2016
It comes after the Glasgow East MP, who was forced to resign the SNP whip over alleged financial irregularities in the accounts of Women For Independence, was served a writ by Alastair Cameron, head of Scotland in Union.
She faced a potential defamation trial and being sued for up to £30,000 after tweeting that Mr Cameron was a "holocaust denier".
Her lawyer Aamer Anwar also issued a statement this morning saying she had settled the matter out of court and said: "Natalie McGarry has issued an unequivocal apology for her comments and that is the end of the matter- there will be no further comment."
It is understood Ms McGarry has agreed to make charitable donations worth in the region of £10,000.
Alistair Cameron said: "I am pleased to accept this apology from Ms McGarry and draw a line under this unfortunate incident. The payment Ms McGarry has agreed to make will go to three excellent charities which I have been involved with and I am delighted that some good will now come of this."
Veterans' mental health charity Combat Stress, the Aegis Trust, which works to prevent genocide and crimes against humanity, and children's charity Lumos will all receive a share of the funds Mr Cameron will receive from Ms McGarry after legal costs.
He added: "Politics in Scotland invokes passion and strong opinion on all sides, particularly on social media. I hope this serves as a reminder to us all that we need decency and respect in our debate, whether we agree with people or not.
"I look forward to continue making the positive case for Scotland in the UK."
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