Ashley Olsen is suing the National Enquirer for $40 million in damages over a story alleging that she was involved in a drug scandal.

The lawsuit filed in Superior Court Monday alleges libel and false-light invasion of privacy by the tabloid. The publication and its parent companies, American Media Inc. and National Enquirer Inc., were named as defendants.

The lawsuit said that while a story in the National Enquirer's Feb. 21 issue doesn't refer to her using or selling drugs, it implied that Olsen was doing so with a misleading headline and cover picture depicting the actress with her eyes half-shut.

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"Freedom of the press is a valuable right, but it is not a license for gossipy tabloids to tar and feather innocent celebrities and destroy their reputations and businesses for the rags' profits," the lawsuit said.

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