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From Apryl Duncan, for About.com

Woody Allen Settles Lawsuit Against American Apparel

Monday May 18, 2009
Just hours before actor-director Woody Allen was set to testify in his lawsuit against American Apparel, the two sides agreed to a settlement. American Apparel's insurance company will pay half of Allen's $10 million demand, settling the suit for $5 million.

Allen filed suit against American Apparel last year over a billboard and Internet ads using his image. The ads showed altered pictures of Allen as a rabbi from the Oscar-winning movie Annie Hall.

American Apparel balked at the claim for $10 million in damages. In the end, the insurance company controlled the case's defense and made the decision to settle.

Allen said he received no compensation from the ads. The lawsuit claimed that he "does not engage in the commercial endorsement of products or services in the United States" and that he hasn't appeared in any ads for U.S. products since the 1960s.

Is the settlement amount justified or outrageous? Share your opinion.

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