Mr Todd, who retired as general secretary of the TGWU last March, had sued over an article in December 1990 about the re-running of elections to the union's executive committee after it was discovered that surplus ballot papers had been used illegitimately.
The newspaper alleged that he lied in a press release by stating that he had called in the police.
The High Court in London was told that as the re-run ballot closed on 23 March 1990, Mr Todd handed police a report on the fraud and it was announced that he had called in the police.
The Sun accepted that the press release was true, Mr Todd had not lied, there was no reason to doubt his motives and he was not trying to hide anything. It also agreed to pay his legal costs.
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