"Full House" actress Ashley Olsen is suing the National Enquirer tabloid for $40 million, accusing it of libel and invasion of privacy in its current cover story.

According to the lawsuit filed in a Los Angeles court, the story titled "Ashley Olsen Caught in Drug Scandal", had a misleading headline and photo that made her look "drugged", reported Hollywood portal Eonline.

The tabloid had alleged that the 18-year-old New York University fresher was involved in a drug scandal as her boyfriend Scott Sartiano was reportedly offered drugs as bribes to testify in court.

The lawsuit claimed that the actress "does not use or sell drugs". As compensation, the New York University fresher is demanding $20 million in libel damages and $20 million in false light invasion of privacy damages.