American Apparel settles Woody Allen suit for $5 million

Woody Allen’s lawsuit against American Apparel for unauthorized use of his image on billboards ended Monday with a $5 million settlement to be paid to the actor-director by the clothing company. Allen said the case should discourage advertisers from using celebrities’ images without permission, but American Apparel’s head said he still thinks his company had a good defense. The settlement, announced just moments before jury selection was to begin in New York, interrupted a trial that lawyers had hinted could include a parade of witnesses testifying about Allen’s sex scandals.