James Franco and his co-defendants agreed to pay $2.2 million to settle a lawsuit alleging he intimidated students at an acting and film school he founded into exploitative sexual situations, court filings made public on Wednesday showed.
The two sides first reached a deal to settle the class-action suit in February, but it took several months to resolve details, and the settlement amount was not previously disclosed.
Actresses and ex-students Sarah Tither-Kaplan and Toni Gaal, who first filed a lawsuit in October 2019 that was joined by many others, alleged that at his now-defunct school, Studio 4, Franco pushed his students into performing increasingly explicit scenes on camera that went far beyond those acceptable on Hollywood film sets.
The two sides also agreed to release a joint statement.
“While Defendants continue to deny the allegations in the complaint, they acknowledge that Plaintiffs have raised important issues; and all parties strongly believe that now is a critical time to focus on addressing the mistreatment of women in Hollywood,” the statement said.
"All agree on the need to make sure that no one in the entertainment industry — regardless of sex, race, religion, disability, ethnicity, background, gender or sexual orientation – faces discrimination, harassment or prejudice of any kind.”
It alleged that Franco “sought to create a pipeline of young women who were subjected to his personal and professional sexual exploitation in the name of education", and that students were led to believe roles in Franco’s films would be available to those who went along.
Franco’s production company Rabbit Bandini and his partners including Vince Jolivette and Jay Davis were also named as defendants.
The settlement includes “non-economic” terms that have not been made public.
It has been submitted to a Los Angeles judge for approval.
Before filing the lawsuit, Tither-Kaplan aired her allegations of sexual misconduct against Franco along with other women in the Los Angeles Times after Franco won a Golden Globe Award for The Disaster Artist in 2018, when the #MeToo movement was first sweeping across Hollywood.
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Mountain Classification Tour de France after Stage 8 on Saturday:
- 1. Lilian Calmejane (France / Direct Energie) 11
- 2. Fabio Aru (Italy / Astana) 10
- 3. Daniel Martin (Ireland / Quick-Step) 8
- 4. Robert Gesink (Netherlands / LottoNL) 8
- 5. Warren Barguil (France / Sunweb) 7
- 6. Chris Froome (Britain / Team Sky) 6
- 7. Guillaume Martin (France / Wanty) 6
- 8. Jan Bakelants (Belgium / AG2R) 5
- 9. Serge Pauwels (Belgium / Dimension Data) 5
- 10. Richie Porte (Australia / BMC Racing) 4
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
