Woody Allen, American Apparel Settle Suit for $5 Million

Woody Allen agreed to a $5 million settlement in his lawsuit against American Apparel on Monday.

The filmmaker sued the clothing company for using an image -- an unauthorized still from Annie Hall -- parodying him as a rabbi without his permission, according to the Associated Press. The photo advertisement was on billboards and on the brand's website.

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"I am told the settlement of $5 million I am being paid is the largest amount ever paid under the New York right to privacy law," Allen told reporters outside the courthouse.

Both sides announced the settlement -- to be paid by American Apparel's insurance company -- on the morning a trial was to start in federal court in New York City. Allen, who was seeking $10 million from the company, was due to take the stand as the first witness of the trial.

The star, 72, said in a statement that he hoped the outcome "would discourage American Apparel or anyone else from ever trying such a thing again."

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American Apparel president Dov Charney was also present at the courthouse and said it was not his decision to settle with the director. Instead the retailer's insurance company, which is footing the bill for the hefty legal fee, opted to avoid a trial.

"I'm not sorry of expressing myself," Charney said, adding that he "would never try to malign the dignity of Mr. Allen."

Court papers filed on Allen's behalf had described the actor-director as one of the most influential figures in the history of American film, and say he believes maintaining strict control over his image has been critical to his success.

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The image, he says, falsely implied he endorsed a clothing line known for its racy advertising -- a "blatant misappropriation and commercial use of Allen's image."

American Apparel lawyers previously called the $10 million demand "outrageous," especially since the billboards were taken down after a week.

Charney insisted there were no hard feelings, according to the Associated Press.

"I have respect for Mr. Allen... I hope to meet him on more friendly terms at a different point."


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