The defamation suit filed by Geoffrey Rush against The Daily Telegraph claims the newspaper made him out to be a "pervert" and "sexual predator" with their "KING LEER" headline.

The 66-year-old actor has launched defamation proceedings against the tabloid, with a statement of claim filed in the Federal Court on Friday.

The documents also allege that Rush was forced out of his role as the AACTA president, rather than voluntarily stepping aside, as he told the media last weekend.

Who is he suing?

The 2012 Australian of Year is suing the owner of The Daily Telegraph, Nationwide News Pty Limited, and the journalist who penned the articles, Jonathon Moran.

Moran is a reporter for the Confidential section of the newspaper which reports on entertainment news and celebrity gossip.

His reporting was on the front page of the print publication and widely distributed online when the stories were published.

What is he suing for?

Geoffrey Rush with a costume he wore in a Melbourne Theatre Company production of The Importance of Being Earnest. ( AAP: David Crosling )

The statement of claim lodged by Rush's lawyers takes aim at a series of articles, headlines and social media.

The first complaint is about the newspaper's billboard on November 30, a poster usually seen on the outside of newsagents, which said: "WORLD EXCLUSIVE: Geoffrey Rush in scandal claims, theatre company confirms 'inappropriate behaviour'."

The court documents allege the implication was that Rush had "engaged in scandalously inappropriate behaviour" and "inappropriate behaviour of a sexual nature" in the theatre.

The next issue was about the article published that same day which was run with the front page headline: "KING LEER: World Exclusive Oscar-winner Rush denies 'inappropriate behaviour' during Sydney stage show."

The lawyers claim the article, billboard and headlines had defamatory meaning and made Rush out to be a "pervert" a "sexual predator" and had engaged in "inappropriate behaviour" against another person in the Sydney Theatre Company's 2015 production of King Lear.

The second article which Rush's lawyers raised as a problem was published on December 1 with the headline "WE'RE WITH YOU: Theatre cast back accuser as Rush denies 'touching'".

Rush's team argue the meaning that could be taken from this is he behaved as a "sexual predator", had "committed sexual assault", was " a pervert", had "inappropriately touched an actress" and his behaviour was so serious the STC "would never work with him again".

What else?

One of the further complaints is how Rush's allegations were linked to other high-profile reports in recent weeks of sexual harassment and assault in the screen and theatre worlds: namely producer Harvey Weinstein, actor Kevin Spacey and Australian television presenter Don Burke.

The legal team pointed out that The Daily Telegraph published in print the allegations about their famous client alongside an article "about allegations concerning alleged sexual predator and television personality Don Burke so as to falsely and unfairly associate the allegations against the applicant with the allegations against Mr Burke".

The damages section also claimed that the newspaper's labelling of Rush as "King Leer" and "Bard behaviour" ridiculed Rush and damaged his reputation.

Special damages alleged were that Rush would suffer "economic loss", his reputation would be "irreparably harmed" so that he would be "shunned by employers in future" and he was asked to quit as AACTA president.

How much money is involved?

The documents don't give Rush's defamation action a dollar figure.

Other recent high-profile defamation cases by celebrities against media outlets have some large dollar amounts attached to them.

Australian actor Rebel Wilson successfully sued Bauer Media for $4.5 million over a series of articles that appeared in Woman's Day, Women's Weekly, OK Magazine and New Weekly in 2015.

Sorry, this video has expired Rebel Wilson wins defamation case

Bauer said they would be appealing the decision.

What is the newspaper's response?

The Daily Telegraph editor Chris Dore said they would defend the newspaper's reporting in court.

"The Daily Telegraph accurately reported the Sydney Theatre Company received a complaint alleging that Mr Geoffrey Rush had engaged in inappropriate behaviour," he said.

"We will defend our position in court."

The matter is expected to reach court early in 2018.