Katie Holmes settles with tabloid over false drug claims

Los Angeles, CA, United States (AHN Entertainment) - Katie Holmes has settled the lawsuit she filed against Star Magazine over an article published alleging she was a drug addict. The 32-year-old former "Dawson's Creek" actress and wife of Tom Cruise will donate the undisclosed settlement to a charity.

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Last month, Holmes filed a $50 million defamation lawsuit against the magazine for its January headline titled "Addiction Nightmare! Katie Drug Shocker!" The actress alleged that the article was "untrue, unethical and unlawful."

Star originally stood by its story, expecting the case to be dismissed. But in its issue released this week, the tabloid admitted its blunder, and printed an apology to the actress.

The apology reads: "In a recent issue of Star, we published headlines about Katie Holmes that could be read to suggest that she was addicted to drugs. Star did not intend to suggest that Ms. Holmes was a drug addict or was undergoing treatment for a drug addiction."

"Star apologizes to Ms. Holmes for any misperception and will be making a substantial donation to charity on Ms. Holmes' behalf for any harm that we may have caused."

Holmes will be donating the amount to Dizzy Feet Foundation, an organization that helps underprivileged children pay for dance classes.