Katie Holmes sued American Media Inc. last month for a January magazine cover with a headline that read “Katie DRUG SHOCKER!”

Financial terms of the settlement were not disclosed. Holmes had been seeking more than $50 million in damages.

The magazine published an apology to the actress Tuesday on its cover and inside, saying it “did not intend to suggest that Ms. Holmes was a drug addict or was undergoing treatment for drug addiction.”

It apologized “for any misperception” and said it would be making “a substantial donation” to charity “for any harm that we may have caused.”

If Katie is addicted to anything it is caffeine. She was spotted at a Starbucks yesterday (February 28) in Vancouver picking up a cup after she finished working out a gym.

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