Bauer Media did not challenge the jury's defamation finding in its appeal and sought only for the damages to be reduced.
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.
Bauer Media appealed against a Supreme Court of Victoria order that Wilson be compensated $650,000 in general damages and $3,917,472 in special damages
The Melbourne appeals court of three judges slashed Wilson's 4.6 million Australian dollar ($3.5 million) payout to AU$600,000 ($454,000).
The star of three "Pitch Perfect" movies and "Bridesmaids" won AUS$4.6 million (US$3.5 million) in damages from the German publisher past year after a court found a series of articles accusing her of lying about her age, name and childhood events had cost her roles.
Wilson, 38, was not present in court when the Court of Appeal handed down its ruling and published a 252-page judgment on Thursday.More news: Apple to close iPhone security loophole used by police
But the judge accepted Bauer's argument that there was insufficient evidence Wilson lost millions in potential earnings as result of several defamatory articles in Australian magazines.
It was the biggest defamation payout in Australian legal history.
While the original damages awarded to Wilson were split into $650,000 in general damages and $3.9 million to compensate for work she missed out on because of the damage to her reputation, today's decision removed the $3.9 million compensation entirely, saying Wilson never actually proved a link between the Bauer articles and her missing out on roles in films. She said she subsequently had not tried to correct wrong information printed about herself. "As I've said before, I have already won the case and this is unchallenged".More news: UN Assembly blames Israel for Gaza violence
Amy Lieu is a news editor and reporter for Fox News.More news: United States teen gets head stuck in giant exhaust pipe