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Woody Settles with Producers

Everyone says I love you, but what do you say after a $12 million lawsuit and a bitter fallout with your best friend?

Woody Allen and former producer pal Jean Doumanian will just have to figure that one out on their own.

After spending nine days in court, lawyers for both sides announced Tuesday they've settled Allen's lawsuit against Doumanian and her business partner boyfriend, Jacqui Safra, whom he accused of cheating him out of $12 million.

According to a joint statement, "The parties have reached a business resolution of the dispute. The case is over."

Terms of the settlement weren't disclosed, but both sides said they were happy with the decision.

Tuesday's settlement came nine days into their high-profile trial in a Manhattan courtroom, where Allen joked with the judge and then turned serious while testifying about his longstanding friendship with Doumanian that turned sour over money matters.

The 66-year-old filmmaker sued Doumanian and Safra last May, accusing them of skimming $12 million in profits from eight movies they made together under their Sweetland Films banner, including Mighty Aphrodite, Bullets over Broadway, Sweet and Lowdown, Small Time Crooks, Deconstructing Harry, Celebrity and Everyone Says I Love You and the documentary Wild Man Blues.

During his testimony, Allen admitted that he never paid much attention to his finances until 2000, when he wanted to buy a house.

In turn, Doumanian shed tears on the stand while her lawyers described her as a "heroine" who saved Allen's movie career. They claimed she and Safra helped out "a friend in need" when Allen's previous distributor, TriStar, backed out during his string of personal turmoil in the early 1990s. Doumanian countersued Allen, claiming he actually owed them money after receiving $19.5 million from Sweetland Films.

Doumanian took the stand Monday and early Tuesday, admitting to the court she wasn't sure about some of the details of her film deals, like whether Deconstructing Harry made a profit (despite documents showing the film made $5.4 million). At one time, she had also given herself a $250,000 raise without clearing it with Allen.

"I spoke to Woody about it at dinner in 1997," she said, recalling that she told him, "Hey pal, I took a raise."

Through it all, Allen had hoped he could patch up his long-running friendship with Doumanian. In a letter he sent to her after filing the lawsuit, Allen said "This was supposed to be amusing--like a Tracy-Hepburn movie. In court by day, friends by night."

But when asked whether they'd ever be friends again, Doumanian shrugged and replied "Who knows?"

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