Rushdie went into hiding and was under police protection after Iran's Ayatollah Khomeini called for the writer's death because he said Rushdie's 1988 book "The Satantic Verses" was offensive to the prophet Muhammad.
Ron Evans, a former police officer who was part of the Special Branch protection squad that guarded Rushdie while his life was threatened, claimed in his yet-to-be-published memoir "On Her Majesty's Service" that Rushdie was unhygienic, suicidal and sought to profit from the fatwa on him during the time he was under police protection.
However, Justice Nigel Teare this week made a Declaration of Falsity against Evans, his writing partner Douglas Thompson and John Blake Publishing, The Times of London reported.
Evans' lawyer subsequently apologized on his client's behalf for 11 counts of falsehood made against Rushdie.
"This has been an unattractive affair," The Times reported Rushdie said after the hearing.
"My only interest was to establish the truth. I'm happy that the court has made its declaration of falsity and that the authors and publishers have recognized their falsehoods and apologized. As far as I am concerned that's the end of the matter."
The book's publication was delayed after Rushdie became aware of what it said following its serialization in the Mail on Sunday newspaper.