The usually demure star was climbing out of her chauffeur-driven car at the Ziegfeld Theatre when a slash in her figure-hugging black dress revealed she was not wearing underwear.
Hathaway managed to stay calm and appeared completely unfazed by the incident before joining her co-stars Hugh Jackman, Russell Crowe and Amanda Seyfried on the red carpet before the screening.
However, she was later overheard telling Vanity Fair writer Ingrid Sischy that she was mortified by the incident and blames her dress for being so tight, according to the New York Daily News.
She told Sischy, "I was getting out of the car and my dress was so tight that I didn't realise it until I saw all the photographers' flashes. It was devastating. They saw everything. I might as well have lifted up my skirt for them."
Despite her upset, editors at New York Post gossip column Page Six report that Hathaway later laughed off the incident after discovering the explicit photos had gone viral on the Internet, adding, "And I just thought, 'OK, where's the comedy?' It has hit. It has landed. A bomb has gone off. I think what I am going to do is whatever my next appearance is... I'm going to step out of the car in a blanket. You've got to laugh at it."
Lindsay Lohan's plans to spend the summer in England have taken on a little urgency--she's fallen for a London boy.
The actress/singer admits she's on the lookout for a London suite to add to her luxury hotel homes--so she can court in the English capital.
She let slip about her romantic intentions during a recent chat with Interview magazine editor Ingrid Sischy, confessing, "I want to get a place in London. I kind of like a boy in London."
The Mean Girls star currently spends much of her time in a suite at Los Angeles' Chateau Marmont and New York's Mercer Hotel, where she shares a room with designer Marc Jacobs.
Lohan Dismisses Simpson Feud
Lindsay Lohan has blasted tabloid rumors she's feuding with Jessica Simpson following a feud at a party that left the pop star in tears.
Lohan insists the story is far from true and she's actually one of Simpson's biggest supporters as she struggles through her divorce from Nick Lachey.
The Mean Girls star reportedly snapped when Simpson refused to thank her for sending a tray of drinks over to her table at a recent Hollywood soiree.
But she tells Interview magazine, "I did not go into this industry to be shown on the cover of some magazine fighting with Jessica Simpson, who I think is a sweet girl.
"She's going through a divorce, and it's heard enough for her.
"They (tabloids) basically said I was verbally harassing this girl. I'm not that person."
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Nicole Kidman is putting to rest rumors that her marriage to Tom Cruise was a sham. Reuters published experts from an interview with Vanity Fair in which the Australian actress stresses that she and Cruise had a "real marriage" for almost 10 years.
Kidman told Vanity Fair contributing editor Ingrid Sischy that when she first started dating Cruise, "I was willing to give up everything ... The marriage existed because it was two people in love. It's that simple ... He basically swept me off my feet. I fell madly, passionately in love."
Kidman also added that she doesn't really care about the rumors surrounding their sexuality. "They've said I'm gay, they've said everyone is gay. I personally don't believe in doing huge lawsuits about that stuff. Tom does. That's what he wants to do, that's what he's going to do. You do not tell Tom what to do. He is a force to be reckoned with.
"I have a different approach. I don't file lawsuits because I really don't care," she went on. "Honestly, people have said everything under the sun. I just want to do my work, raise my kids, and hopefully find somebody who I can share my life with again."
When Sischy asked Kidman why the marriage ended, the actress responded, "I'm starting to understand now. At the time, I didn't."
Sischy said she sensed Kidman would do anything to reverse the events, but the actress knew there could not be any other outcome because of her artistic needs.
"I think I had to choose," Kidman replied when Sischy said women could have both a marriage and a career. "I think (the marriage) would have come down to it. I suppose it wasn't meant to be."