Katie Holmes Settles Libel Case vs Star Magazine

Katie-Holmes-2009Katie Holmes is not pushing through with her libel suit against tabloid Star Magazine after the two sides reach a settlement, the actress’s rep confirmed on Wednesday.

Holmes reportedly decided to withdraw the $50-million suit after Star agreed to backtrack on and issue an apology for an article that accused the former “Dawson’s Creek” star of being a drug addict. The magazine, which was founded by Rupert Murdoch in 1974 but is now owned by American Media Inc., will also make a “substantial donation” to a nonprofit dance foundation picked by Holmes.

The 32-year-old actress, who is married to famous Scientologist-actor Tom Cruise, filed the defamation suit in March after Star published in its January edition the coverline “Addiction Nightmare. Katie Drug Shocker!” The inside story accused Holmes of undergoing counseling sessions in the Church of Scientology. In its apology, which comes out in the May 9 edition of the magazine that hit newsstands Wednesday, Star said it “did not intend to suggest Katie Holmes was a drug addict or was undergoing treatment for a drug addiction.”