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Woody Allen settles American Apparel suit

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Movie director Woody Allen leaves Federal Court after reaching a settlement with American Apparel for illegally using an image from one of his films in billboard ads on May 18, 2009 in New York. (UPI Photo/Monika Graff) | <a href="/News_Photos/lp/26b53f4bbe40288b2a207e1fc89735db/" target="_blank">License Photo</a>
Movie director Woody Allen leaves Federal Court after reaching a settlement with American Apparel for illegally using an image from one of his films in billboard ads on May 18, 2009 in New York. (UPI Photo/Monika Graff) | License Photo

NEW YORK, May 18 (UPI) -- Filmmaker Woody Allen said outside a New York courtroom Monday he has settled his lawsuit against the American Apparel clothing company.

Allen, 72, sued the company for $10 million for allegedly using his image in ads without his permission.

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The trial had been scheduled to start Monday with Allen expected to be the first witness to take the stand.

However, E! News said the settlement was announced shortly after Allen arrived at the Manhattan federal courthouse Monday morning.

"I am told the settlement of $5 million I am being paid is the largest amount ever paid under the New York right to privacy law," E! News quoted Allen as telling the media outside the courthouse.

He added he hopes the settlement "would discourage American Apparel or anyone else from ever trying such a thing again."

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