American Apparel settles with Woody Allen

May 18, 2009 by Ian Evans

American Apparel Inc. has settled the lawsuit with Woody Allen over the company’s use of his image in advertising for $5 million. The trial was due to begin shortly.

Outside Manhattan federal court Allen said that, “I am told the settlement of five million dollars I am being paid is the largest reported amount ever paid under the New York right to privacy law.”

The suit by Allen was brought after the clothing company used an image of Allen from Annie Hall in an advertisement without the director’s permission. Allen had sued the company for $10 million, saying that he had a long-standing tradition of not appearing in North American advertising and that the campaign affected his reputation.

In turn, American Apparel, usually known for its ads of scantily-clad models, said that Allen had already tarnished his reputation with his personal life and threatened to call ex-girlfriend Mia Farrow and Soon-Yi Previn — Mia’s adopted daughter and Allen’s wife — to the stand.

Today, they blinked.