In February 2025, an orchestrated stunt between the Daily Telegraph and Ofir Birenbaum failed when he entered Cairo Takeaway in Sydney's inner suburb Newtown, while a reporter waited outside to capture any incident.
In the event's aftermath, Mr Birenbaum sued Cairo Takeaway's owners for posting defamatory material online and the parties reached a confidential settlement outside court on March 26.
The settlement terms were breached when Mr Birenbaum and lawyer Rebekah Giles claimed victory shortly after.
"The Truth Wins. I have been completely vindicated," Mr Birenbaum wrote on Instagram.
"I have been given an unreserved public apology for the lies they told about me."
His lawyer Rebekah Giles claimed it was a "vindication for Jews across the globe" in her own statement.
Both statements claimed a false victory and breached the terms of settlement with Cairo Takeaway, the Federal Court found on Tuesday.
"It is simply false to say that Cairo Takeaway apologised for any 'lies' being uttered about Mr Birenbaum at all, let alone that it offered such an apology in unreserved terms," Justice Robert Bromwich found.
"It is made all the worse that this conduct was not just facilitated by a solicitor, Ms Giles, but actively driven by her."
In the initial incident, Mr Birenbaum entered the restaurant wearing a Star of David cap and pendant, while a senior Daily Telegraph reporter waited outside.
The Telegraph's reporter then entered the restaurant with a photographer when no incident occurred and allegedly asked a staff member whether they had a problem with Mr Birenbaum.
The Daily Telegraph apologised in March for causing distress to staff at Cairo Takeaway.
Its owner Hesham El Masri told AAP on Tuesday he wants to live life normally again.
"This whole court case has been a very difficult time for my family and I," Mr El Masri said in a statement.
"We agreed to compromise because we did not want the fight to get out of hand ... We were bitterly disappointed that the other side did not show the same respect."
The court will consider who pays for the legal costs of the hearing into the settlement breach at a later date.
Ms Giles provided a statement to AAP on behalf of Mr Birenbaum.
"The resolution brokered between the parties remains on foot and I remain happy with its terms," Mr Birenbaum said.
Lifeline 13 11 14
beyondblue 1300 22 4636
12°C