But Bauer, backed by a host of large Australian media companies, appealed the decision in February, arguing the damages bill was too high.
Actress Rebel Wilson struts across the stage as she is introduced to speak at College Signing Day, an event honoring Philadelphia students for their pursuit of a college education or career in the military at Temple University in Philadelphia, May 2, 2018.
The articles alleged Wilson had lied about her age, her name and her upbringing in Australia, and were featured across Australian magazines, including Bauer's Australian Women's Weekly, New Weekly and OK Magazine.
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).
Rebel Wilson's defamation payout from German-based publisher Bauer Media has been drastically reduced from $4.5 million to $600,000. "I do hope to receive as much as possible to give away to charities and to support the Australian film industry".
Bauer Media had appealed the record damages which were awarded to Wilson past year over defamatory articles that she successfully argued had portrayed her as a serial liar.
According to Buzzfeed, the judge denied Wilson "special damages" stating she had not proven that the defamation cost her work.
"While this case was never about the money for me ..."
"I'm looking forward to helping out some great Australian charities and supporting the Oz film industry with damages I've received".
Speaking on behalf of Bauer Media, General Counsel, Adrian Goss, said in a statement: "It was important for us to revisit the award of damages".
Wilson's legal representatives were not immediately available for comment.
But the Court of Appeal found there was no basis for her to be awarded financial damages for the potential loss of roles, setting aside the economic damages entirely.