Her attorney, Bert Fields, says in a statement that that the January cover that featured the headline "Katie DRUG SHOCKER!" was not supported by the actual story inside the magazine. He called the cover, which featured a disheveled photo of Holmes, "untrue, unethical and unlawful."
Holmes says in a statement that Star, which is published by American Media Inc., knew the story was false and published it to sell magazines.
The magazine says in a statement it is standing by its story, which it says raises significant concerns about Scientology practices.
Holmes is married to Tom Cruise. She starred in the TV series "Dawson's Creek" and numerous films.