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.
