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Actress Cameron Diaz has sued The National Enquirer tabloid for more than $10 million over a story that accused her of cheating on boyfriend Justin Timberlake.

The libel suit, filed in Santa Monica Superior Court on Wednesday, says the newspaper turned an "innocent, insignificant and non-memorable occurrence involving co-workers and friends into a sensationalistic, scandalous and accusatory story which was completely false."

In a May 23 cover story headlined "Cameron Caught Cheating," the tabloid published photos and said Diaz kissed MTV producer Shane Nickerson outside a Los Angeles studio.

Diaz says that she briefly hugged Nickerson, who works on her television show "Trippin," and other co-workers while saying goodbye, and that there was no kissing.

National Enquirer spokesman Stu Zakim said: "We stand behind our reporting and will defend the suit aggressively in court."

Diaz and Nickerson are each asking for more than $10 million in damages. Diaz also wants a judge to award her all the money earned by the tabloid from its report.

Diaz, 32 and singer Timberlake, 24, have been dating since early 2003.