James Franco has reportedly reached a settlement in a sexual misconduct lawsuit filed by several former students from his acting school, although it still requires judicial approval. The lawsuit was initiated in 2019, following numerous allegations from students and other women in the entertainment industry who accused Franco of exploiting young women.
This week, Franco has agreed to pay a total of $2,235,000, which will be distributed among his accusers. Specifically, $894,000 is earmarked for the women who accused him of sexual exploitation, while $1,341,000 will go into a common fund for plaintiffs who claimed fraud against him and his acting school. Although Franco and his legal team have consented to the settlement terms, a judge has yet to give it the green light.
The settlement stipulates that Franco will not admit any wrongdoing or liability regarding the accusations. In return for the financial compensation, plaintiffs Sarah Tither-Kaplan and Toni Gaal will withdraw their claims against him. Should the settlement be finalized, Tither-Kaplan is set to receive $670,500, minus $223,500 in attorney fees, and Gaal will get $223,500, with $74,500 deducted for legal expenses.
According to the Los Angeles Times, the $1.3 million common fund will be allocated to students who paid for courses or spots at Franco’s Studio 4 Film School in New York or Los Angeles between February 2014 until the school’s closure in 2017. The lawsuit alleged that Franco’s film school was essentially a sham designed to provide him access to young, impressionable women whom he could exploit both financially and sexually.
In a 2018 investigation by the Los Angeles Times, five women accused Franco of sexual harassment and exploitation, recounting disturbing experiences such as being pressured into explicit scenes, including a so-called “orgy type setting” during classes. The lawsuit claimed that Franco aimed to create a “pipeline” of young women subjected to his personal and professional exploitation under the guise of education. Franco has also faced sexual assault allegations from his former co-star, Busy Phillips.
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In summary, James Franco has agreed to a $2.2 million settlement to resolve a sexual misconduct lawsuit from former students, while maintaining no liability for the allegations. The funds will be divided among the accusers and a common fund for students who attended his acting school.