By Keith Staskiewicz
April 27, 2011 at 05:58 PM EDT
Kevin Winter/Getty Images

Less than two months after Katie Holmes served the publisher of Star magazine with a $50 million libel lawsuit for their January cover story “Katie Drug Shocker,” the legal wrangle has been resolved. According to a statement released today from Holmes’ camp, the actress and American Media, Inc. have reached a settlement, part of which includes an apology printed in the magazine’s May 9 issue and touted on the cover. The full statement reads:

Katie Holmes announced today that she has reached a settlement of her defamation lawsuit against American Media, Inc., publisher of Star Magazine.  Ms. Holmes filed a complaint against the tabloid last month after Star published a cover story falsely suggesting she was addicted to drugs.

While the monetary terms of the settlement are confidential, American Media has issued a rare public apology to Ms. Holmes, which it announced on the cover of the May 9th, 2011 issue of Star, published today.  The apology, which is also printed inside the magazine, reads as follows:

“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.”

In connection with the apology and settlement, American Media has made a substantial contribution on Ms. Holmes’ behalf to Dizzy Feet Foundation, a non-profit charity that helps underprivileged youngsters realize their dreams of becoming professional dancers and to support, improve, and increase access to dance education in the United States.

In a statement, Katie Holmes said: “I’m pleased that this lawsuit could be resolved amicably and accept American Media’s apology.  With this dispute out of the way, I look forward to once again focusing my attention on my family and career.”

Ms. Holmes’ attorney, Aaron Moss said: “American Media did the right thing by apologizing to Katie, but this is a story that should never have been published in the first place.  Her lawsuit should serve as a lesson to other tabloids that if they print false and defamatory stories about Katie, she will stand up for her legal rights.”

A lawyer for American Media told EW, “Our only comment is that the lawsuit has been amicably resolved, and the statement in the magazine speaks for itself.”

Read more:

Katie Holmes files libel lawsuit against American Media Inc.

Does ‘Star’ magazine’s Katie Holmes story actually allege she’s a drug addict?