Contostavlos' PA, Gareth Varey, was heard in a recording played during the trial that he knew men who had slept with Simon Cowell, reported Daily Mirror.
Cowell's representative has now issued a statement on the 54-year-old father of one's behalf to set the record straight.
"Simon was referred to during the trial without forewarning, resulting in widespread media coverage of untrue claims regarding his private life. In 2014 the question of whether someone is or is not gay is antiquated.
"However, the issue was the false suggestion made by Mr Varey that Simon - who is renowned for his honesty and candidness - had thus not been truthful in the public arena and this is what we have been obliged to clarify," a statement from Cowell's management said.
Varey could not be reached for comment so far.