Katie Holmes Reaches Star Magazine Settlement

Tabloid says it didn't mean to imply actress was an addict when it blared the words “Katie DRUG SHOCKER!” on its cover

Katie Holmes has settled her defamation lawsuit against American Media, Inc. over a January cover story in Star magazine that suggested Holmes had a drug problem, TheWrap has confirmed.

Holmes launched the lawsuit in Los Angeles after the issue, which blared the words "Katie DRUG SHOCKER!" and "Addiction Nightmare" on its cover, hit the stands.

Also read: "The Full Lawsuit: Katie Holmes Sues American Media for $50M for Libel"

Though the financial details of settlement remain undisclosed — Holmes had been seeking in excess of $50 million — the latest issue of Star includes an apology saying that the magazine "did not intend to suggest that Ms. Holmes was a drug addict or was undergoing treatment for drug addiction."

American Media will also make "a substantial donation" to children's charity Dizzy Feet Foundation, which helps disadvantaged children pursue dancing careers, in Holmes' name.

Holmes said in a statement that she accepted American Media's apology, adding, "With this dispute out of the way, I look forward to once again focusing my attention on my family and career.”

Holmes' attorney, Aaron Moss, said that Holmes' lawsuit "should serve as a lesson to other tabloids that if they print false and defamatory stories about Katie, she will stand up for her legal rights.”