Woody Allen, American Apparel ad lawsuit settled

A legal battle between filmmaker Woody Allen and American Apparel that got fairly personal and nasty over the use of his image has been settled rather peacefully.

Before the trial began Monday in Manhattan's Federal District Court, Allen announced that he had accepted a $5 million settlement from the clothing manufacturer, reports the New York Times.

The lawsuit stems from AA using the image of Allen dressed as a rabbi from "Annie Hall" on its billboards. The director demanded $10 million for the use of his image and then went one step futher, claiming that American Apparel's ads were "sleazy" and "infantile" and that they hurt his reputation.

The 11th-hour settlement means that Allen can avoid a trial in which the manufacturer would retaliate, potentially bringing forward information about Allen's wife Soon-Yi Previn. AA has insisted that the use of Allen's image was merely satire, which is protected as free speech.

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