Los Angeles, April 28 : Actress Katie Holmes has settled a lawsuit against a US tabloid which suggested that she was a drug addict.

In January, Star magazine had published a cover story with a headline that read "Katie Drug Shocker" and "Addiction Nightmare" accompanied by her picture, following which she had filed a $50 million defamation lawsuit against American Media, the publisher.

Usmagazine. com reports that the latest issue of the tabloid's cover reads: "Star Apologizes to Katie Homes".

The inside apology says: "Star did not intend to suggest that Ms. Holmes was a drug addict or was undergoing treatment for a drug addiction. Star apologises 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 also released a statement saying: "I'm pleased that this lawsuit could be resolved amicably and accept American Media's apology." (IANS)