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| Ex-Playboy Model, Freed From Contract, Can Discuss Alleged Trump Affair | Ex-Playboy Model, Freed From Contract, Can Discuss Alleged Trump Affair |
| (35 minutes later) | |
| The tabloid news company American Media Inc. agreed to let a former Playboy model out of a contract that had kept her from talking freely about an alleged affair with Donald J. Trump, her lawyer said. | The tabloid news company American Media Inc. agreed to let a former Playboy model out of a contract that had kept her from talking freely about an alleged affair with Donald J. Trump, her lawyer said. |
| The settlement agreement, reached Wednesday, ends a lawsuit brought by the model, Karen McDougal, and protects the president from being drawn into a legal case involving efforts to buy the silence of women who had stories to tell about him during the 2016 campaign. | The settlement agreement, reached Wednesday, ends a lawsuit brought by the model, Karen McDougal, and protects the president from being drawn into a legal case involving efforts to buy the silence of women who had stories to tell about him during the 2016 campaign. |
| He still faces another lawsuit, from the pornographic film star Stephanie Clifford, who is suing to get out of a deal that Mr. Trump’s personal lawyer, Michael D. Cohen, arranged in 2016 for her silence about an alleged affair. | He still faces another lawsuit, from the pornographic film star Stephanie Clifford, who is suing to get out of a deal that Mr. Trump’s personal lawyer, Michael D. Cohen, arranged in 2016 for her silence about an alleged affair. |
| In August 2016 American Media, which owns The National Enquirer, acquired the rights to Ms. McDougal’s story about Mr. Trump — which it never ran — in return for $150,000 and commitments to use its magazines to promote her current career as a fitness specialist. | In August 2016 American Media, which owns The National Enquirer, acquired the rights to Ms. McDougal’s story about Mr. Trump — which it never ran — in return for $150,000 and commitments to use its magazines to promote her current career as a fitness specialist. |
| Under the terms of Wednesday’s settlement, American Media has the right to up to $75,000 of any future profits from her story about the alleged affair, which Mr. Trump denies. According to her lawyer, Peter K. Stris, Ms. McDougal can keep the $150,000 payment and the publisher will retain the rights to photographs of her that it already has. American Media said that it also maintained the right to publish columns about Ms. McDougal. | |
| “It’s a total win,” Mr. Stris said in an interview. “We got everything we were fighting for — she got out of the contract, gets the life rights back and owes A.M.I. nothing more.” | “It’s a total win,” Mr. Stris said in an interview. “We got everything we were fighting for — she got out of the contract, gets the life rights back and owes A.M.I. nothing more.” |
| In a separate interview, Ms. McDougal expressed elation about the end of her “wild ride,” and said she currently had no plans to sell the rights to her story to a new buyer. “It’s one step at a time for me,” she said. “Today, I’m doing my victory dance.” | In a separate interview, Ms. McDougal expressed elation about the end of her “wild ride,” and said she currently had no plans to sell the rights to her story to a new buyer. “It’s one step at a time for me,” she said. “Today, I’m doing my victory dance.” |
| Ms. McDougal’s lawsuit said that American Media, whose chairman, David J. Pecker, is a friend of President Trump’s, misled her into signing the contract. It also alleged that Mr. Cohen had inappropriately intervened in the deal. | Ms. McDougal’s lawsuit said that American Media, whose chairman, David J. Pecker, is a friend of President Trump’s, misled her into signing the contract. It also alleged that Mr. Cohen had inappropriately intervened in the deal. |
| The deal, and the extent of Mr. Cohen’s role in it, are subjects of a wide-ranging federal corruption investigation that is, in part, looking into his efforts to protect Mr. Trump’s presidential prospects in 2016. | The deal, and the extent of Mr. Cohen’s role in it, are subjects of a wide-ranging federal corruption investigation that is, in part, looking into his efforts to protect Mr. Trump’s presidential prospects in 2016. |
| American Media indicated earlier this month that it would fight Ms. McDougal, asking the Los Angeles Superior Court to dismiss her lawsuit. | American Media indicated earlier this month that it would fight Ms. McDougal, asking the Los Angeles Superior Court to dismiss her lawsuit. |
| But that was roughly a week before federal investigators obtained email communications, audio recordings and other documentation from Mr. Cohen during their raid of his office, home and hotel room. Those materials included information about American Media and the McDougal suit, people involved in the case said. | But that was roughly a week before federal investigators obtained email communications, audio recordings and other documentation from Mr. Cohen during their raid of his office, home and hotel room. Those materials included information about American Media and the McDougal suit, people involved in the case said. |
| The suit also claimed that Mr. Cohen had been secretly involved in the talks between A.M.I. and Ms. McDougal’s lawyer at the time, Keith Davidson — who emailed Mr. Cohen at the end of the talks. A.M.I. also spoke with Mr. Cohen about Ms. McDougal, though it says it did so only as part of its reporting process. | The suit also claimed that Mr. Cohen had been secretly involved in the talks between A.M.I. and Ms. McDougal’s lawyer at the time, Keith Davidson — who emailed Mr. Cohen at the end of the talks. A.M.I. also spoke with Mr. Cohen about Ms. McDougal, though it says it did so only as part of its reporting process. |
| Mr. Stris said on Wednesday that before reaching the settlement he was prepared to answer American Media’s motion to dismiss Ms. McDougal’s case with a request for a limited version of pretrial discovery, in which both sides would have been compelled to share emails and other records that could have provided information about the deal from inside American Media that would not be available through the material the F.B.I. seized from Mr. Cohen. Mr. Stris said he would ask to submit written questions to Mr. Trump, and ask for several internal documents. | Mr. Stris said on Wednesday that before reaching the settlement he was prepared to answer American Media’s motion to dismiss Ms. McDougal’s case with a request for a limited version of pretrial discovery, in which both sides would have been compelled to share emails and other records that could have provided information about the deal from inside American Media that would not be available through the material the F.B.I. seized from Mr. Cohen. Mr. Stris said he would ask to submit written questions to Mr. Trump, and ask for several internal documents. |
| The settlement precludes any of that from happening, at least in Ms. McDougal’s civil case, though Mr. Stris said he expected federal investigators to eventually secure everything they need to fully vet the process behind the deal. “I have tremendous confidence in the men and woman of the Southern District of New York,” he said, referring to the federal prosecutors investigating Mr. Cohen. | The settlement precludes any of that from happening, at least in Ms. McDougal’s civil case, though Mr. Stris said he expected federal investigators to eventually secure everything they need to fully vet the process behind the deal. “I have tremendous confidence in the men and woman of the Southern District of New York,” he said, referring to the federal prosecutors investigating Mr. Cohen. |
| The initial deal precluded Ms. McDougal from speaking about her affair with Mr. Trump, but A.M.I. amended the contract after the election to allow her to answer “legitimate press inquiries,” in response to her complaints that the agreement was overly restrictive. In recent weeks, she has spoken to The New Yorker and Anderson Cooper of CNN. | The initial deal precluded Ms. McDougal from speaking about her affair with Mr. Trump, but A.M.I. amended the contract after the election to allow her to answer “legitimate press inquiries,” in response to her complaints that the agreement was overly restrictive. In recent weeks, she has spoken to The New Yorker and Anderson Cooper of CNN. |
| Separate from the federal investigation into Mr. Cohen, A.M.I. is facing a complaint at the Federal Election Commission that its $150,000 payment to Ms. McDougal was an illegal campaign expenditure. The publisher has denied this, saying it was acting solely as a news organization with a First Amendment right to run stories — or not run them — as it chooses. | Separate from the federal investigation into Mr. Cohen, A.M.I. is facing a complaint at the Federal Election Commission that its $150,000 payment to Ms. McDougal was an illegal campaign expenditure. The publisher has denied this, saying it was acting solely as a news organization with a First Amendment right to run stories — or not run them — as it chooses. |