An 8,000-word report into the article by the Columbia Journalism Review found lapses in journalism standards at the pop-culture magazine from start to finish of the purported expose on rape which prompted a police investigation and sparked public outcry when first published in November.
Investigators probing the allegations said last month they found no evidence to support the explosive claims of a violent gang rape at a college fraternity in Virginia.
The magazine that has a reputation for its investigative work said it was wrong to have trusted the alleged victim's version of what happened in September 2012 at a University of Virginia frat house.
Despite the shrinking editorial staff at Rolling Stone, the review found the failures for the article were ones of judgement and not due to a shortage of resources.
The article's reporting is "a story of journalistic failure that was avoidable. The failure encompassed reporting, editing, editorial supervision and fact-checking," the review said.
The author of the article Sabrina Rubin Erdely issued an apology yesterday, saying she "did not go far enough" to verify the story, according to US media.
The controversial article attempted to show a dramatic example of sexual assault on a college campus and the struggles victims face afterwards, a problem at universities across the United States.
But reporters and editors were so focused on publishing the harrowing example that "basic, even routine" reporting standards were not followed, according to the report.
With the publication of the harsh review of the handling of the article on its website, Rolling Stone said it has officially retracted the controversial story.
"This report was painful reading, to me personally and to all of us at Rolling Stone," a note from Rolling Stone Managing Editor Will Dana said at the top of the review.
Despite the sharp criticism of those involved in the story, Dana told the New York Times that no one would be fired.
The report "was not the result of patterns in the work of these people," he told the paper.
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