Die Aktuelle caused huge controversy when it published a front-page feature claiming to have a “first interview” with Schumacher since his 2013 skiing accident.
Inside, and without any permission from the family, the magazine published quotes that had been generated by AI technology.
The upset that the interview caused prompted the publishers to remove the magazine’s editor-in-chief Anne Hoffmann from her position and it subsequently issued an apology.
"This tasteless and misleading article should never have appeared," Funke managing director Bianca Pohlmann wrote in a statement.
"It in no way meets the standards of journalism that we and our readers expect from a publisher like Funke.
"As a result of the publication of this article, immediate personnel consequences will be drawn. Die Aktuelle editor-in-chief Anne Hoffmann, who has held journalistic responsibility for the paper since 2009, will be relieved of her duties as of today."
The Schumacher family took legal action over the matter, and it has now been heard in the German courts.
Sources have confirmed that a settlement was reached in the Munich Labour Court by Die Aktuelle’s publishers for compensation over the interview. It is believed Schumacher’s family will receive 200,000 Euros.
The Schumacher family have kept details about the seven-time world champion's condition and recovery strictly private since the skiing accident that left him with a severe brain injury.
He is continuing to recover from the accident at home in Switzerland and hasn't been seen in public since, with only the family's closest friends maintaining contact.
The only insight into the life of the Schumachers came in the family-curated Netflix documentary "Schumacher", which was released in 2021 and featured interviews with his wife Corinna and son Mick.
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In the documentary, Corinna said: "We live together at home. We do therapy. We do everything we can to make Michael better and to make sure he's comfortable, and to simply make him feel our family, our bond.
"We're trying to carry on as a family, the way Michael liked it and still does. And we are getting on with our lives."
