The magazine issued an apology to the actress on Tuesday on the cover and inside the mag.
The apology reads: “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.”
Katie Holmes sued American Media last month for the cover of the January edition of Star bearing the title “Katie DRUG SHOCKER!”
Financial terms of the deal were not disclosed. Katie Holmes claimed more than $ 50 million in damages.
On Wednesday Holmes released a statement, saying: “I’m pleased that this lawsuit could be resolved amicably and accept American Media’s apology.”