Actually, they paid damages to Rockstar, who chose to donate said money to charity.
But no word on the fate of Jerry Lawton, the "journalist" responsible for the article, which leads me to the conclusion that in all probability, he suffered no consequences as a result of this, other than possibly a "please don't do that again" from his editor.

Makes me wonder if they actually HAVE an editor. Surely it's someone's job to prevent stuff like this from being published in the first place.

Sure, they have editors. But the Daily Star is a tabloid rag, and a tabloid editor's job is different than a real newspaper editor's job, despite having the same title.
I mean, do you really think the Weekly World News fact-checked bat boy? They're just making shit up and trying to skirt a line between outrageous sensationalist fantasy and half-assed plausibility. The trouble is they also assume their readers are all morons.

I've never understood why the Weekly World News gets that treatment. No-one bashes the Onion for being inaccurate. It is like there is this secret club where everyone who doesn't understand parody hangs out, and a memo which reads "Hate the Weekly World News, it is nonfactual despite looking like a newspaper!" is given to every member.
I remember when they were saying the Catholic church was replacing all their priests with robot priests because of the molestation scandal, lol. I find it incomprehensible how anyone could mistake that for a genuine attempt to trick people.