He was outed as a sex fetishist. The libel action was brought over the Nazi label, and the judge found there was no evidence of a Nazi theme. If the judge had found there was a Nazi theme, then the libel action would have failed - truth is a defence.
http://news.bbc.co.uk/1/hi/uk/7527319.stm
Yep, you're right. I mixed up the libel action with the invasion of privacy action. Truth is a defense to the libel claim but not to invasion of privacy. For IOP, truth is an element in newsworthiness, which can be a defense to IOP. (See eg http://www.lse.ac.uk/collections/law/news/libel.pdf for a long boring legal discussion.)
