Star magazine has made amends with actress Katie Holmes, issuing an apology for a recent cover which said Holmes had a drug problem, TMZ reports.

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The January headline of "Addiction Nightmare! Katie Drug Shocker!" caused Holmes to file the $50-million defamation suit, claiming it was "untrue, unethical and unlawful."

Part of 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 ..."

Holmes' rep told TMZ the lawsuit has been settled, and Star's publisher, American Media made a "substantial" donation to the actress' charity. Exact amounts were not revealed.

Katie released her own statement today, saying, "I'm pleased that this lawsuit could be resolved amicably and accept American Media's apology."

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