Allen issued a statement via his publicist calling the letter "untrue and disgraceful."
Walters, who admitted she was friends with Allen, described him as a loving father and husband during a "View" segment on the claims.
“I know Mia, I have a good relationship with her, but I’ve been with Woody many times with his two daughters, he’s got almost a twenty-year-old marriage to Soon Yi which started as a sensation," Walters told the panel. "I have rarely seen a father as sensitive and as loving and as caring as Woody is to [his daughters]. I don’t know about Dylan, I can only tell you about what I’ve seen now, that it’s a good marriage and that he’s a loving, caring father.”
"She has nothing to gain by coming out and saying this," McCarthy responded.
"You've got a man who's got a track record...he liked young women," Shepard said.
Walters' comments received plenty of Twitter backlash on Monday.
do you realize what kind of culture and atmosphere you're contributing to by denying someone who speaks up about abuse @BarbaraJWalters???— primitive apostate™ (@yaaDetroitewaa) February 3, 2014
It's ridiculous how IGNORANT Barbara Walters is, the fact she can defend Woody Allen's disgusting behavior because she "knows him" #TheView— christian. (@iLLESTx) February 3, 2014
I think any respect I had left for Barbara Walters is now gone. smdh.— Brandon B. (@excuseyou77) February 3, 2014
Dylan Farrow also called out actors and actresses who have worked with and praised Allen in the past, including Cate Blanchett, Alec Baldwin and Diane Keaton.
Baldwin said it was inappropriate for him to comment on a "family issue, while Blanchett told reporters,"It's obviously been a long and painful situation for the family and I hope they find some sort of resolution and peace."
Celebrity Families of 2014 [PHOTOS]