The batsman was not at London's High Court for the settlement of his action against the optician services group over the "serious and defamatory allegation".
His solicitor, Louise Prince, told Mr Justice Tugendhat that the "Should've gone to Specsavers" advert was published on the company's Twitter account and Facebook page in August, and also appeared in various newspapers and magazines.
Accompanied by a photo of Pietersen, it contained the statement: "'Bat tampering' in the #Ashes? Apparently Hot Spot should've gone to Specsavers."
Ms Prince said the allegation of bat tampering was completely untrue and without any foundation whatsoever.
Specsavers Optical Group Ltd accepted that Pietersen did not behave in the manner suggested, apologised and had already removed the advert from circulation. It had also agreed to pay him substantial damages and his legal costs.
The group's solicitor, Niri Shan, said it did not intend to imply that Pietersen may have tampered with his bat. It acknowledged that the allegation was untrue and apologised for the distress and embarrassment caused.