British tabloids and the paparazzi, particularly the Daily Mirror, have long claimed that Moss habitually used cocaine. In interviews Moss dismissed these claims as ridiculous, and the Sunday Mirror was sued successfully by Moss for claiming that she had slipped into a coma after taking large amounts of cocaine in Spain in the 1990s. On 15 September 2005, London's Daily Mirror ran front page and inside photos that seemed to show Moss snorting several lines of cocaine at a Babyshambles recording session. It was also reported that Moss snorted five lines in 40 minutes. It has been alleged by Babyshambles' singer Pete Doherty that James Mullord, his former manager, sold the photos to the newspaper for more than £150,000. Within a short time of publication, Moss lost major modeling contracts with several international companies. On 20 September 2005, the Swedish fashion retailer H&M, which intended to feature her in a campaign of their autumn clothes range designed by Moss's good friend Stella McCartney, announced instead that it was dropping Moss after the drug allegations. The contract was reportedly worth £4 million a year. A day later, Chanel announced that it would not be renewing its contract with Moss, which was set to expire in that October, although the company said that its decision had nothing to do with the drug scandal. Burberry also decided to drop Moss's campaign with them. Moss quickly issued an apology though she stopped short of admitting drug use.
"I take full responsibility for my actions. I also accept that there are various personal issues that I need to address and have started taking the difficult, yet necessary, steps to resolve them," she said. "I want to apologize to all of the people I have let down because of my behaviour which has reflected badly on my family, friends, co-workers, business associates and others."
Moss continued to appear in major ad campaigns during this period for Dior. She was on the cover of the November 2005 W and also appeared inside in a multi-page fashion shoot. She was also defended by friends and supporters, including models
Naomi Campbell and Helena Christensen, French actress Catherine Deneuve, her ex-boyfriend Johnny Depp, and designer Alexander McQueen. McQueen's defense was especially notable, and during his walk-out after a fashion show he wore a t-shirt saying "We love you Kate."
Artist Stella Vine also supported Moss, and paintings by Vine of the model, painted during the scandal, were exhibited and reproduced in the press. Vine defended Moss saying to The Independent newspaper, "I had been painting Kate Moss for a long time, both before the time of her crisis and during it. I felt very strongly for her - she's a hard-working mum and it seemed as if suddenly the world turned against her." Pop singer Robbie Williams said of Moss's relationship with Doherty, "I can understand why Kate finds it difficult to leave Pete; he has a certain charisma surrounding him." Also in November 2005, Moss ended her relationship with Doherty soon after he checked himself out of Meadows Clinic in Arizona, failing to complete a programme for drug rehabilitation. Moss herself underwent successful treatment there in October and had urged Doherty to seek the same treatment himself. Doherty claims that their separation involved other issues, telling the The Sun newspaper that Moss left him because, “I can’t buy her diamonds.” On 5 January 2006, the Metropolitan Police asked Moss to return from the US to Britain to answer questions about the September 2005 cocaine scandal. The following day, the Daily Mirror reported that Moss would return to Britain and face arrest for allegations of cocaine usage. She was interviewed by police in London on 31 January 2006, with her solicitor present, but reportedly made no admissions, and she was not arrested (photographs of alleged drug-taking are not admissible evidence in British courts). On 16 June 2006, British police finally dropped the charges for lack of evidence. Ultimately Moss was cleared of all charges and resumed her modeling career. Criticism of Moss has, however, continued; and her career revival has been viewed as a sign of moral and cultural decline by conservatives such as Peter Hitchens.