Yeah - that's a not unlikely reading of the situation. Morrissey CLEARLY states that the teacher touches him in an 'unnecessarily sensual' way, and regarded him in a sexual manner, so I can't see how he could POSSIBLY object to the Manchester Evening News headline on that ground.
On the other hand, if the ex-teacher in question, or his relatives, have made complaints and threatened to sue Morrissey and/or the publishers, then I can see Morrissey putting this flimsy after-the-fact denial out there to try and dampen down the fire. The fact that these headlines were in the papers a few months ago and he has only responded publically now is highly suspicious on that front.
Interesting.