According to court records, James Franco and his partners in his production company have agreed that $2.2 million will be paid to settle claims of fraud and sexual harassment brought against him by former students.Franco, his partners and Rabbit Bandini Productions have denied violating any laws. They maintain that they "made no false representations to students and that students received all the services and benefits they promised."They also denied all sexual harassment and exploitation claims in the 2019 lawsuit."Defendants concluded that any further defense would be costly for all parties and that substantial amounts have been and would remain devoted to defense of asserted damages," states the settlement filed in Los Angeles County Superior Court on June 24. Although defendants claim they are not liable for the claims, they have agreed that they will settle according to the terms and manner proposed.The settlement was reported by the Los Angeles Times on Wednesday.Toni Gaal and Sarah Tither-Kaplan filed the lawsuit in October 2019. They claimed that acting students were deceived by the school's "master classes", which they claimed would give them audition opportunities.Franco encouraged them to nude or partially nude in simulated sexual scenes in classes. They were also required to sign away any rights to tapes recorded during the classes.Tither-Kaplan's and Gaal's attorneys did not respond to our requests for comment immediately.After a Los Angeles Times investigation, five women accused Oscar-nominated actor of coercive and sexually inappropriate behavior, the lawsuit was filed. Tither-Kaplan was one of the women who claimed that she felt the school had a culture of exploiting women, making them feel "replaceable."Violet Paley, another of the five women involved, told BuzzFeed News also that Franco coerced her into performing oral sex with him.According to court records, $894,000 will be used to settle "sexual abuse claims."The settlement also prohibits any party to the lawsuit from speaking about it except in a public statement.The court filing states that while Defendants deny the allegations in their Complaint, they recognize that Plaintiffs raised important issues. All parties strongly believe that this is the right time to address the mistreatment of Hollywood women. "All parties agree that there must be no discrimination, harassment, or prejudice in the entertainment industry, regardless of race, religion or disability.Franco attorneys sent the statement in the settlement as a joint statement to those who were asked.According to court records, the agreement was reached after two days' worth of mediation. These sessions took place in June 2020 and August 2020. The lawsuit involved interviews with approximately 50 actors and former students.Franco's allegations have caused some backlash in the industry, especially among actors who worked with him in the recent past.Charlyne Yi (who worked with Franco in The Disaster Artist) posted an Instagram message calling out Franco's "white male feminist peers" for failing to "hold him accountable for abusing women, and then using their power and platform for gaslighting them."Franco's co-star Seth Rogen told the Sunday Times in May that he no longer plans to work with him.Rogen did not say whether he believed the allegations. He only said that he "despised" harassment and abuse.He said, "I would never cover up or conceal the actions or put someone in a position where they were around someone such as that."
