Justice Michael Wigney on Thursday said the publisher of the Daily Telegraph and journalist Jonathon Moran had been reckless regarding the truth when they reported an allegation of inappropriate behaviour by Rush in 2017.

The judge found a poster and two articles contained several defamatory meanings - including that Rush was a pervert and sexual predator - but the news organisation didn't prove they were substantially true.

The Telegraph's articles related to an allegation Rush behaved inappropriately to a co-star - later revealed to be Eryn Jean Norvill - during a Sydney Theatre Company production of King Lear in 2015-16.

Norvill was the main defence witness at last year's defamation trial, telling the court Rush deliberately stroked the side of her breast during a preview performance when her character was dead onstage.

She said he also touched Norvill's lower back backstage, made groping gestures and sexual innuendo toward her during rehearsals and said in a message after the production that he thought about her "more than is socially appropriate".

But Justice Wigney on Thursday said Norvill was at times "prone to exaggeration and embellishment" and he wasn't persuaded she was entirely credible.

He awarded Rush $850,000 for general and aggravated damages and set down a hearing in May to consider special damages which could ammpunt to millions.

Outside court, Norvill stood by her testimony, saying: "I told the truth. I know what happened. I was there."

Rush said there were no winners in the case and it had been "extremely distressing for everyone involved".

Australian Associated Press