"American Apparel has agreed to pay Woody Allen $5 million to settle a lawsuit brought against the company by the filmmaker in 2007.

Allen had charged the L.A.-based retailer had used his image on two billboards in 2007 without his consent, thereby invading his privacy and damaging his reputation. He was seeking $10 million in damages in the case, which was being heard in U.S. district court in Manhattan.

In a statement, Dov Charney, founder and chief executive of American Apparel said, “Naturally there is some relief of not having to go through a trial but I also harbor a sense of remorse and sadness for not arguing an important issue regarding the First Amendment, particularly the ability of an individual or corporation to invoke the likeness of a public figure in a satiric and social statement.”

Charney added that the decision to settle the case came at the behest of American Apparel’s insurance carrier, which will pay the bulk of the $5 million settlement agreement."