Woody Allen agrees to settlement in lawsuit

0 Comments | Deseret News (Salt Lake City), May 19, 2009

Woody Allen agreed Monday to a $5 million settlement in his lawsuit accusing American Apparel of using an image parodying him as a rabbi without his permission.

Both sides announced the settlement -- to be paid by American Apparel Inc.'s insurance company -- on the morning a trial was to start in federal court in Manhattan.

Reading from a statement outside court, Allen said he hoped the outcome "would discourage American Apparel or anyone else from ever trying such a thing again." His lawyers said the $5 million appeared to be the largest amount ever paid to settle a lawsuit brought under state privacy statutes.

American Apparel president Dov Charney told reporters it wasn't his decision to settle. The Los Angeles-based company's insurance company "controlled the defense" in the case, he said.