Kate Hudson was rumored to have hooked up with Justin Timberlake back on New Year’s when he attended a party at her place and they were said to have dissapeared together for a few hours. We didn’t hear much more about it, and I assumed it was just a rumor.

Now Hudson is said to have put those rumors to rest when she ran into Diaz a couple of weeks ago. She is said to have taken her aside and to have told her “I didn’t sleep with your man!” They hugged, Diaz got kind of weepy, and they put the whole thing behind them:

But a friend of one of the actresses tells me: “Kate and Cameron ran into each other outside the bathroom at the Waverly Inn a couple of Saturdays ago. Kate told Cameron: ‘I didn’t sleep with your man, you know.'”

According to the source, “Cameron teared up, and they hugged.”

Hudson seems happy with her new boyfriend, Owen Wilson, while Diaz was seen out with magician Criss Angel in Las Vegas last weekend, as we reported yesterday.

This is London is reporting that Criss Angel’s one-time fiance, Minnie Driver, was devastated to be replaced by Cameron Diaz, but she was said to have broken up with him back in November after he was publically flirting with Paris Hilton. They might have reconciled, but the article doesn’t seem to have any insider information and just mentions a vacation Driver and Angel took to Mexico in September of last year, when he supposedly proposed.

Meanwhile the overrated guy that all the fuss is about, Justin Timberlake, seems to have happily moved on too. He flew his new girlfriend, Jessica Biel, out to the UK to visit him while he’s on tour. They were seen out at a soccer match and stayed at a top notch hotel together.