Oscar-winning actor Geoffrey Rush has been awarded $850,000 in initial damages after winning his defamation case against Nationwide News over two articles published by The Daily Telegraph in 2017.

Key points: Justice Wigney found The Daily Telegraph failed to prove imputations published in two articles involving Mr Rush

Justice Wigney found The Daily Telegraph failed to prove imputations published in two articles involving Mr Rush He said the stories were "recklessly irresponsible pieces of sensationalist journalism of the very worst kind"

He said the stories were "recklessly irresponsible pieces of sensationalist journalism of the very worst kind" Speaking outside court, Mr Rush said there were "no winners" in the case

In a damning judgement in the Federal Court, Justice Michael Wigney said Nationwide News and journalist Jonathan Moran failed to prove the imputations published in two articles in late 2017 were true.

Justice Wigney said in publishing unsubstantiated stories alleging Mr Rush behaved inappropriately towards a female co-star during a 2015-16 production of King Lear, the newspaper produced "recklessly irresponsible pieces of sensationalist journalism of the very worst kind".

He said he would determine an amount of damages related to lost income for Mr Rush — on top of the $850,000 awarded today — at a later date.

Court documents lodged during the trial revealed Mr Rush was seeking more than $25 million in damages.

In his judgement on Thursday, Justice Wigney found the actor at the centre of the accusations against Mr Rush, Eryn Jean Norvill, was an unreliable witness, prone to "exaggeration and embellishment".

He said Ms Norvill's evidence was not credible or reliable and contradicted by other members of the cast during the King Lear production, when the incidents reported by The Daily Telegraph were alleged to have occurred.

Mr Rush's legal team argued the imputations conveyed by the articles included that he was a "pervert", a "sexual predator" and had engaged in "scandalously inappropriate" behaviour in the theatre.

Justice Wigney said The Daily Telegraph and Mr Moran failed to adequately research the stories before they published.

"This is a sad and unfortunate case," he said.

Mr Rush, who launched the proceedings last year, sat in court with his wife Jane Menelaus and showed little emotion as a lengthy summary of the judgement was read out.

Watch Duration: 4 minutes 1 second 4 m 1 s Watch Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Justice Michael Wigney hands down his verdict

Justice Wigney said it would have been better "for all concerned" if the issues arising from the articles had been dealt outside a defamation court.

"But they were not. And so it comes to this."

Outside court, Mr Rush thanked his wife and children for their support through the "harrowing" time.

"There are no winners in this case," he said.

"It's been extremely distressing for everyone involved."

One man yelled "congratulations Geoffrey" as Mr Rush spoke to the large media pack.

'I told the truth'

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 2 minutes 7 seconds 2 m 7 s Eryn Jean Norvill responds to Justice Wigney's verdict outside court on Thursday

Ms Norvill said she stood by everything she said during the trial.

"I told the truth," she said outside court.

"I know what happened. I was there."

Ms Norvill also said the case had caused "hurt" for "everyone".

"I would have been content to receive a simple apology and a promise to do better, without any of this."

The three-week trial, held in October and November, captivated the often-packed public gallery as a stream of some of the country's best-known actors were called to give evidence.

The front page which sparked the high-profile defamation trial. ( ABC News )

Ms Norvill told the court Mr Rush made groping gestures towards her in a rehearsal and touched her breast during a harrowing scene where the king mourned over his daughter's dead body, among other allegations.

She made no formal complaint at the time and wanted her concerns to be kept confidential, but was called to give evidence when Nationwide News relied on a defence of truth.

Ms Norvill did not speak to the newspaper for the stories.

Mr Rush's barrister, Bruce McClintock SC, said his client was earning $128,000 a month before the stories, but had become too scared to work.

He even suggested the Oscar-winner may never work again.

Mr McClintock took swipes at the Australian media and said the case highlighted a "serious problem" with journalism because reporters "took sides" and "made judgments".

Tom Blackburn, who represented The Daily Telegraph, argued there was a difference between "inappropriate behaviour" and "pervert" or "sexual predator".

The articles also included a line from Mr Rush denying the allegations, he stressed.