Katie Holmes Settles Lawsuit with 'Star' Magazine

American Media makes a rare apology to the actress and agrees to make "a substantial donation" to a charity on her behalf after insinuating she was a drug addict.
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Katie Holmes

Katie Holmes has settled her lawsuit with the publishers of Star magazine over a cover story that suggested she was a drug addict.

American Media Inc. has published an apology on Star’s cover and in its new issue, stating it "did not intend to suggest that Ms. Holmes was a drug addict or was undergoing treatment for drug addiction."

Holmes had been seeking more than $50 million in damages after Star ran a January magazine cover that screamed, "Katie DRUG SHOCKER!"

Though the monetary terms of the settlement are confidential, American Media said it is making "a substantial donation" on Holmes’ behalf to Dizzy Feet Foundation, a non-profit charity that helps underprivileged youngsters realize their dreams of becoming professional dancers and to support, improve and increase access to dance education in the United States.

 “I’m pleased that this lawsuit could be resolved amicably and accept American Media’s apology,” Holmes said in a statement. “With this dispute out of the way, I look forward to once again focusing my attention on my family and career.”

Adds Holmes’ attorney Aaron Moss: “American Media did the right thing by apologizing to Katie, but this is a story that should never have been published in the first place. Her 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.”

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