Woody Allen, American Apparel settle suit

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Allen appeared Monday at a Manhattan courthouse, where he had sued the Los Angeles-based clothing manufacturer over its advertising.

The actor-director sued American Apparel Inc. last year for $10 million.

He claimed the company did not have permission to use a doctored frame of him from the Oscar-winning film "Annie Hall" on billboards and on a Web site.

American Apparel called it a First Amendment issue.

Jury selection had been scheduled for Monday.

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