Ashley Olsen is fighting back after taking a trip through the tabloid wringer.

The teen titan on Monday filed a $40 million defamation lawsuit against the National Enquirer and its publisher, American Media Inc., over the tab's Feb. 21 cover story, which bears the headline "Ashley Olsen Caught in Drug Scandal."

The story is accompanied by an unflattering photo of Olsen with her eyes half-closed, "clearly designed to create the misimpression that she was 'drugged'," per the blonde twin's suit.

The New York University freshman was purportedly "devastated" by the story which alleges that her boyfriend, nightclub impresario Scott Sartiano, offered drugs as bribes in exchange for testimony in a court case against a former acquaintance.

Per the Enquirer, Sartiano was questioned in the case about whether he had ever used drugs such as cocaine and Ecstasy and whether he was present during a public sex act that took place in an area called the "Freak Box" at a club called Spa. Sartiano reportedly answered in the affirmative to both queries.

The story quotes an anonymous pal of the teen star as saying, "Nobody can believe that Ashley took up with Scott--he's not the kind of guy she should be hanging out with."

However, as pointed out both in Olsen's suit and in a Feb. 14 letter from her attorneys demanding that the Enquirer retract the story, the so-called scandalous events outlined in the story took place before the former Full House star ever met Sartiano.

"Clearly, the only reason for even reporting this story is because of Ms. Olsen's fame--not any public interest in Mr. Sartiano's activities," attorney Stanton L. Stein wrote in a letter to the higher-ups at American Media Inc. and the National Enquirer.

According to Olsen's suit, the New York Minute star has a squeaky-clean past when it comes to drug use.

"Ms. Olsen has not used and does not use illegal drugs and she has not sold or otherwise given cocaine, Ecstasy or any other illegal drug to anyone for any purpose," the suit states.

"There is no 'drug scandal'--or at least there was no 'scandal' prior to the publication of the article. Ms. Olsen is not 'caught' or involved in any way in any 'drug scandal.' "

Per the suit, Olsen is demanding $20 million in libel damages and $20 million in false light invasion of privacy damages.

The lawsuit also dismissed the Enquirer's assertion that Olsen planned to move in with Sartiano.

It's not the first time the Olsen Empire has faced down rumors of drug use.

Last year, Mary-Kate Olsen threatened to sue American Media Inc. over various published reports that her weight issues were brought on by a drug addiction. That suit has yet to be filed.

Per her suit, Ashley Olsen and her lawyers believe that "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."

American Media Inc., the Delaware-based corporation that owns the Enquirer and Star magazine, routinely stands behind the stories it runs in its magazines--typically vetting at least two sources and having its legal department clear stories before they go to print.

While tabs like the Enquirer are loath to settle claims against them, it remains a semi-frequent practice.

Over the years, dozens of celebs have tried to sue the Enquirer for defamation, with mixed results. Tom Cruise and Nicole Kidman sued AMI's Star magazine in 1999 over an article that claimed during the filming of Eyes Wide Shut, the then married couple were "totally unconvincing as lovers" and needed a sex coach. The mag eventually settled with the former power couple (even though it stood by its story) by printing a retraction and donating money to charity.

Celine Dion was also victorious in her battle against the Enquirer over a story that falsely alleged she was pregnant with twins.

Should Olsen win her battle, the spoils will represent just a drop in the money-choked bucket that represents the holdings of the mini-mogul and her sister.

Just last month, the twins took over full ownership of their billion-dollar media enterprise, Dualstar LLC. Next stop, total world domination.