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Update: Woody Allen settles American Apparel lawsuit for $5 million

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Woody Allen has settled a suit he filed against trendy clothing company American Apparel, and the company will pay him $5 million for using his image in advertising, Reuters reports. “I am told the settlement of five million dollars I ambeing paid is the largest reported amount ever paid under theNew York right to privacy law,” Allen said outsideManhattan federal court where the case was supposed to be heard this morning. Allen claimed his reputation was damaged and the image was used withoutconsent, while American Apparel founder Dov Charney told reporters thecase was about “the dignity of ideas.” He continued: “I am not sorryfor expressing myself.”

Allen was expected to testify in New York court today to support the suit, according to the Associated Press. Allen originally sued American Apparel last year for $10 million, claiming the company didn’t have permission to use his likeness in a 2007 advertising campaign which depicted him as a Hasidic Jew along with Yiddish text meaning “the holy rebbe.” The image American Apparel used was a doctored shot from his Oscar-winning movie Annie Hall.