Woody Allen agreed to a $5 million settlement in his lawsuit against American Apparel on Monday after he sued the company for using his image.
Allen filed suit against the clothes company for using an unauthorized still from Annie Hall – parodying him as a rabbi without his permission. The photo advertisement was on billboards and on the brand’s website.
“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, according to the Associated Press.
The settlement is to be paid by American Apparel’s insurance company.
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.”
American Apparel president Dov Charney was also present at the courthouse and said it was not his decision to settle with the director. “I’m not sorry of expressing myself,” Charney said, adding that he “would never try to malign the dignity of Mr. Allen.”

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