Lawsuit against Madonna dismissed in Russia

ST. PETERSBURG, Russia (AP) — A Russian court on Thursday dismissed a lawsuit that sought millions of dollars in damages from Madonna for allegedly traumatizing minors by speaking up for gay rights during a concert in St. Petersburg.

The ruling came after a one-day hearing that bordered on the farcical. During it, plaintiffs claimed that Madonna's so-called "propaganda of perversion" would negatively affect Russia's birthrate and erode the nation's defense capability by depriving the country of future soldiers. At one point, the judge threatened to expel journalists from the courtroom if they laughed too much.

In the end, the Moskovsky district court in St. Petersburg threw out the Trade Union of Russian Citizens' lawsuit and the 333 million rubles ($10.7 million) it sought from the singer for allegedly exposing youths to "homosexual propaganda."

Madonna did not attend the trial, and her publicist Liz Rosenberg said Thursday the star wouldn't comment about it.

Anti-gay sentiment is strong in Russia, particularly in St. Petersburg, where local legislators passed a law in February that made it illegal to promote homosexuality to minors. Six months later, Madonna criticized the law on Facebook, then stood up for gay rights during a concert in St. Petersburg that drew fans as young as 12.

"Who will children grow up to be if they hear about the equal rights of the lesbian lobby and manly love with traditional sexual relations?" one of the plaintiffs, Darya Dedova, testified Thursday. "The death rate prevails over the birth rate in the West; young guys are becoming gender neutral."

The plaintiffs submitted evidence about gay culture drawn from Wikipedia pages, claiming that a real encyclopedia could not have articles about homosexuality.

"We aren't against homosexual people, but we are against the propaganda of perversion among minors," Dedova told the court. "We want to defend the values of a traditional family, which are currently in crisis in this country. Madonna violated our laws and she should be punished."

Madonna, who performed in Moscow and St. Petersburg in August as part of her world tour, also angered Russian officials by supporting jailed members of the Russian punk band Pussy Riot. The American said during her Moscow concert that she would "pray for them," then turned around so the audience could see the words "Pussy Riot" written on her back. The singer also donned a ski mask similar to those worn by Pussy Riot.

Despite international outrage, three of that band's members were sentenced to two years in jail on hooliganism charges for performing a "punk prayer" at Moscow's main cathedral, during which they pleaded with the Virgin Mary to deliver Russia from President Vladimir Putin. One of the Pussy Riot members was later released from jail on appeal, but the other two were sent to prison camps to serve their sentences.

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Seddon reported from Moscow.

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Judge to let Hostess liquidation proceed

Hostess Brands Inc. on Wednesday won permission from a U.S. bankruptcy judge to begin shutting down, and expressed optimism it will find new homes for many of its iconic brands, which include Twinkies, Drake's cakes and Wonder Bread.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York authorized management, led by restructuring specialist Gregory Rayburn, to immediately begin efforts to wind down the 82-year-old company, a process expected to take one year.

"It appears clear to me that the debtors have taken the right course in seeking to implement the wind-down plan as promptly as possible," Drain said near the end of a four-hour hearing.

The judge authorized Hostess to begin the liquidation process one day after his last-ditch mediation effort between the Irving, Texas-based company and its striking bakers' union broke down.

Roughly 15,000 workers were expected to lose their jobs immediately, and most of the remaining 3,200 would be let go within four months.

"This is a tragedy, and we're well aware of it," Heather Lennox, a lawyer for Hostess, told the judge. "We are trying to be as sensitive as we can possibly be under the circumstances to the human cost of this."

Lennox said Hostess has received a "flood of inquiries" from potential buyers for several brands that could be sold at auction, and expects initial bidders within a few weeks.

Joshua Scherer, a partner at Perella Weinberg Partners, which is advising Hostess, said the company was in "active dialogue" over its Drake's brand with one "very interested" party that had toured a New Jersey plant on Tuesday.

He said that regional bakeries, national rivals, private equity firms and others have also expressed interest in various brands and that more than 50 nondisclosure agreements have been signed.

"These are iconic brands that people love," Scherer said.

While prospective buyers were not identified at the hearing, bankers have said rivals including Flowers Foods Inc. and Mexico's Grupo Bimbo SAB de CV were likely to be interested in some of the brands.

Representatives of neither company responded on Wednesday to requests for comment.

Scherer said Hostess could be worth $2.3 billion to $2.4 billion in a normal bankruptcy, an amount equal to its annual revenue. It also has about $900 million of secured debt and faces up to about $150 million of administrative claims.

Scherer expects a discount in this case because plants have already been closed and Hostess' value could fall further if the liquidation were dragged out.

"I've had buyers tell me, 'Josh, the longer it takes, the less value I'm going to be able to pay you,' " he said.

Hostess decided to liquidate on Nov. 16, saying it was losing about $1 million per day after the Bakery, Confectionery, Tobacco and Grain Millers Union, representing close to one-third of its workers, went on strike a week earlier.

The bakers union walked out after Drain authorized Hostess to impose pay and benefit cuts, which the International Brotherhood of Teamsters, Hostess' largest union, had accepted.

Hostess has about 33 plants, plus three it decided to close after the strike began, as well as 565 distribution centers and 570 bakery outlet stores.

Many of the 3,200 workers expected to stay on will help shut these properties and prepare them for sale. Hostess expects to need only about 200 employees by late March.

Rayburn, a former chief restructuring officer for the bankrupt phone company WorldCom Inc., said that letting 15,000 workers go now helps preserve their ability to obtain unemployment benefits.

"I need to maximize the value of the estate, but I need to do the best I can for my employees," he said.

Hostess filed for Chapter 11 protection on Jan. 11, its second bankruptcy filing in less than three years.

The case is In re: Hostess Brands Inc. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-22052.

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Jesse Jackson Jr. resigns from Congress

Rep. Jesse Jackson resigned from Congress Wednesday, saying in a letter that he is cooperating in a federal investigation "into my activities" but blaming his health problems for his decision to step down just two weeks after his re-election.

Jackson's letter to House Speaker John Boehner was his first acknowledgment of the ongoing corruption probe into his  alleged misuse of campaign dollars.

"I am doing my best to address the situation responsibly, cooperate with the investigators, and accept responsibility for my mistakes, for they are my mistakes and mine alone," Jackson said in the two page letter dated Nov. 21. "None of us is immune from our share of shortcomings or human frailties and I pray that I will be remembered for what I did right."

The congressman could not be reached.

News of the resignation on the eve of Thanksgiving, when Congress was not meeting and many Washingtonians were traveling, seemed to take even Jackson staffers by surprise.
 
His press secretary, Frank Watkins, said Wednesday morning that he didn’t know anything about a possible resignation. Watkins attributed the rumors to press speculation.
 
Watkins said that, late Tuesday afternoon when he left a movie, he learned from another staffer that Jackson had been planning a conference call with his staff. The call was to be held Wednesday but was canceled and did not take place, according to Watkins, who said he is on vacation.

Watkins refused to name the staffer who alerted him to the conference call.

Jackson, 47, a South Side Democrat, has been treated for bipolar depression and has been on a medical leave from Congress since June. He has been under investigation by federal authorities for alleged misuse of campaign dollars and also has faced a congressional ethics probe.

Although he did not wage a campaign, Jackson won re-election on Nov. 6 to another two-year term in the House by defeating a Republican and independent challenger. Under Illinois law, Gov. Pat Quinn, a fellow Democrat, would call a special election to fill Jackson’s 2nd District congressional seat, which extends from Chicago’s South Side to Kankakee.

He is the son of the Rev. Jesse Jackson, the civil rights leader, and the husband of Chicago Ald. Sandi Jackson, 7th.

Rep. Jackson has been under investigation by the House Ethics Committee for alleged improprieties related to his bid to win appointment in 2008 to the Senate seat that had been held by President Barack Obama. A Jackson emissary is alleged to have offered to raise up to $6 million in campaign funds for disgraced former Gov. Rod Blagojevich in exchange for the governor appointing Jackson to the Senate seat.

Blagojevich is serving a prison term for corruption convictions including trying to sell or trade the Senate seat.

After the March primary election, the congressman’s aides belatedly announced his medical leave, which at first was blamed on “exhaustion.”

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In HP-Autonomy debacle, many advisers but little good advice

(Reuters) - When Hewlett Packard acquired Autonomy last year for $11.1 billion, some 15 different financial, legal and accounting firms were involved in the transaction -- and none raised a flag about what HP said Tuesday was a major accounting fraud.

HP stunned Wall Street with the allegations about its British software unit and took an $8.8 billion writedown, the latest in a string of reversals for the storied company.

HP Chief Executive Meg Whitman, who was a director at the company at the time of the deal, said the board had relied on accounting firm Deloitte for vetting Autonomy's financials and that KPMG was subsequently hired to audit Deloitte.

HP had many other advisers as well: boutique investment bank Perella Weinberg Partners to serve as its lead adviser, along with Barclays. Banking advisers on both sides of the deal were paid $68.8 million, according to data from Thomson Reuters/Freeman Consulting.

Barclays pocketed the biggest banker fee of the transaction at $18.1 million and Perella was paid $12 million. The company's legal advisers included Gibson, Dunn & Crutcher; Freshfields Bruckhaus Deringer; Drinker Biddle & Reath; and Skadden, Arps, Slate, Meagher & Flom, which advised the board.

On Autonomy's side of the table were Frank Quattrone's Qatalyst Partners, which specializes in tech deals and which picked up $11.6 million.

UBS, Goldman Sachs, Citigroup, JPMorgan Chase and Bank of America were also advising Autonomy and were paid $5.4 million each. Slaughter & May and Morgan Lewis served as the company's legal advisers.

While regulators in the United States and the United Kingdom, as well as the Federal Bureau of Investigation, are likely to spend many months if not years investigating what happened, legal experts said on Tuesday that it wasn't clear if any of the advisers would ultimately be held liable.

"The most logical deep pocket would be the acquired firm's auditors, who should have allegedly caught these defalcations," said James Cox, a professor at Duke University law school who specializes in corporate and securities law. Since both auditors missed the problems and it appeared to have taken HP a while to catch it after it took over Autonomy, the auditors may have a strong defense.

"You can have a perfectly sound audit and still have fraud exist," he said. A Deloitte UK spokesman said the company could not comment and would cooperate with any investigations.

The law firms and the bankers will likely argue that they were not hired to review the bookkeeping and had relied on the opinion of the auditors, securities law experts said.

Multiple sources with knowledge of the HP-Autonomy transaction added that the big-name banks on Autonomy's side were brought in days before the final agreement was struck. These sources said the banks were brought on as favors for their long relationships with the companies, in a little-scrutinized Wall Street practice of crediting -- and paying -- investment banks that actually have little do with the deal.

LAWSUITS, REPUTATIONS AT STAKE

Plaintiffs lawyers said they were taking calls from investors about HP on Tuesday. Darren Robbins, a San Diego-based plaintiff lawyer who represents shareholders, said the tech icon appears to have spent billions on a shoddy company without undertaking the proper due diligence, and thus misrepresented its finances to investors.

"I think they have serious troubles," he said.

But plaintiff lawyers may have difficulty bringing so-called derivative lawsuits against professional services firms, said Brian Quinn, an M&A professor at Boston College Law School. In those cases, plaintiff lawyers can sue third parties, such as auditors, on behalf of HP -- but they must convince a judge that HP's board is unfit to pursue those claims itself. In this situation, though, HP's board disclosed the alleged fraud itself, Quinn said.

Even if the bankers and lawyers escape any legal problems, they could suffer a reputational hit. The scrutiny could be particularly unwelcome for Perella Weinberg: the firm advised Japanese camera maker Olympus' acquisition of British Gyrus -- a transaction that prompted investigations in the United States, United Kingdom and Japan into fees and payments made by Olympus.

Olympus had hired Perella to execute the transaction, which included a fee paid to "advisers" of $687 million - way beyond the usual scale for a transaction valued at only $2 billion. Perella was not implicated in the matter.

Meanwhile, the most controversial banker involved in the HP-Autonomy deal, Frank Quattrone of Qatalyst, represented Autonomy and played a key role in getting HP to pay a high price.

A star investment banker in the 1990s, Quattrone had worked at Morgan Stanley, Deutsche Bank and Credit Suisse, and helped arrange some of the biggest tech initial public offerings of the era, including Amazon.com Inc and Cisco Systems Inc.

But his time at the top of Silicon Valley was curtailed by charges that he blocked an investigation into IPO kickbacks. After two trials failed to resolve his case, he ultimately reached a deal with prosecutors.

His return to the Silicon Valley M&A scene has impressed many in the tech world.

"His reputation is at an all-time high right now," said Dan Scheinman, the former head of mergers and acquisitions at Cisco who has worked with Quattrone on several deals.

Analysts almost uniformly deemed the $11.1 billion he got HP to pay for Autonomy as overly rich -- a compliment to him at the time, but possibly a hollow success if HP's allegations prove true.

(Reporting By Nadia Damouni and Nicola Leske in New York and Andrew Callus in London. Additional reporting by Dan Levine in San Francisco.; Editing by Peter Lauria, Jonathan Weber, Muralikumar Anantharaman, Janet McBride)

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ESPN to broadcast college football playoffs

NEW YORK (AP) — The college football playoff system will be televised on ESPN for 12 years once it starts after the 2014 season, the network said Wednesday.

The title game will be played on a Monday, at least a week after the semifinals.

The deal is worth close to $500 million a year, a person with knowledge of the terms said. The person spoke on condition of anonymity because the fee had not been announced.

"Folks are going to love this playoff and the attention ESPN will give to it," BCS executive director Bill Hancock said in a statement.

ESPN's current four-year contract to air the Sugar, Orange and Fiesta bowls along with the BCS title game is worth about $125 million per year.

ESPN will own the rights to all six bowls involved in the four-team playoff system. Conference commissioners had decided that the two semifinals would rotate among those half-dozen sites; the four not involved each year will host major bowl games similar to the current BCS contests. The title game will be bid out each season through a separate process, as the Super Bowl is for the NFL.

There will be three "contract bowls" that offer automatic bids to particular conferences in years they don't host one of the semifinals: the Rose, Sugar and Orange. The network already had separate deals for the same 12-year period through the 2025 season for those games, which are affiliated with the Pac-12, Big 12, Big Ten, ACC and SEC.

The new agreement also gives ESPN the rights to the three "host bowls," which will feature at-large teams along with the top squad from the group of five conferences without ties to a contract bowl. The sites for the host bowls are still to be determined, though the most likely landing spots are the Fiesta Bowl in Glendale, Ariz., the Cotton Bowl in Arlington, Texas, and the Chick-fil-A Bowl in Atlanta.

Wednesday's agreement in principle includes rights for TV, radio, mobile, online and international.

"Because of college football's widespread popularity and the incredible passion of its fans, few events are more meaningful than these games," ESPN President John Skipper said.

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College Football Writer Ralph D. Russo contributed to this report.

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A Minute With: Guillermo del Toro on “Rise of the Guardians”

LOS ANGELES (Reuters) – Mexican filmmaker Guillermo del Toro is known for putting a dark twist on super heroes and children’s fantasy, but in “Rise of the Guardians” the producer brings together holiday heroes for a festive adventure.

“Rise of the Guardians,” which will be in theaters on Friday, is based on award-winning author William Joyce’s “The Guardians of Childhood” books. In the film, traditional characters such as Santa Claus, Easter Bunny, Tooth Fairy, Sandman and Jack Frost join forces to save earth’s children from the evil Pitch Black and his band of Nightmares.

In the movie that stars Chris Pine, Alec Baldwin, Jude Law, Isla Fisher and Hugh Jackman, del Toro, 48, steps back into the executive producer role after directing dark fantasy “Pan’s Labyrinth” and the “Hellboy” superhero franchise.

He spoke to Reuters about putting his own stamp on beloved holiday heroes, and why children’s films are important to him.

Q: In “Rise of the Guardians,” Santa has tattoos, the Easter Bunny is Australian and the Tooth Fairy is half-human, half bird. Not the way most of us grew up imagining them, is it?

A: “We didn’t want the characters to have the affections that are given to them in certain cultures. We didn’t want to go with the safe Easter Bunny that is now a marketing tool … We wanted them to represent the world and to geographically make sense. Where would a burrower live, the Outback? The original incarnation of Santa is almost that of a hunter and wild man. It comes from the Nordic and Eastern European notions so we thought it would be great to make him Slavic.”

Q: The film is about addressing fear, which is always a challenging lesson for parents to teach their children. Why make this the central theme?

A: “In order to address fear, parents always end up tiptoeing around the subject. Shielding our kids is not the way to go, but you also don’t want to send them out unprepared without a healthy sense of self. I thought the movie was a great analogy to many things. It’s a great metaphor for kids to interpret the world.”

Q: What attracts you to the children’s genre?

A: “Some of my favorite authors in literature are guys that are great portrayers of childhood, but not necessarily childish – Mark Twain, Charles Dickens, Roald Dahl. And my movies like ‘Hellboy‘ and ‘Hellboy 2′ are about misfits coming together. Same with my Spanish movie ‘The Devil’s Backbone.’ So this movie is thematically very much within what I like to do.

“I think that for good or for bad, we spend the rest of our lives dealing with our first 13 years of life, trying to remedy or be lifted by whatever tools we were given when we were kids. Those first years are when we, as adults, sculpt the character of our kids … In reality, life puts kids in our lives for us to learn from them. There is no braver soul in the world than a kid.”

Q: Which “Guardian” do you identify with the most?

A: “I identify with North (Santa Claus). I have the greatest blessing in my life, which is the capacity to remain a child in the way I like to see the world. Like every artist, I have turmoil and I suffer. But ultimately I am able to find magic in the world. When North declares those principles, when he says ‘I feel it in my belly,’ it’s very much something I identify completely with.”

Q: Can we expect to see more of this band of heroes in future films?

A: “Obviously the possibility of telling another tale is completely dependent on the studio. But Bill Joyce has written many books on the characters and we are on board to create more and more adventures for them. We’ve been talking about some storylines. I am eager to tell everyone the story of North.”

Q: You recently finished shooting sci-fi adventure “Pacific Rim,” due in theaters in 2013, which is your first directing venture since 2008′s “Hellboy II: The Golden Army.” Why the break?

A: “I went to New Zealand to direct ‘The Hobbit’ and I was there for two years. I co-wrote the script, and at the end of the process there was a moment of decision where I really wanted to pursue something else and not keep waiting (‘The Hobbit’ production was delayed due to movie studio MGM’s financial troubles).

“Then I spent over a year trying to get a movie called ‘Mountains of Madness’ off the ground. That didn’t happen. Next it took another two years to get ‘Pacific Rim’ to the screen. But in the meantime, I co-wrote three novels, produced three movies and wrote a TV series. It’s been a very busy five years.”

(Reporting by Zorianna Kit, editing by Piya Sinha-Roy and Jeffrey Benkoe)

Movies News Headlines – Yahoo! News

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US abortions fall 5 pct, biggest drop in a decade

NEW YORK (AP) — U.S. abortions fell 5 percent during the recession and its aftermath in the biggest one-year decrease in at least a decade, perhaps because women are more careful to use birth control when times are tough, researchers say.

The decline, detailed on Wednesday by the Centers for Disease Control and Prevention, came in 2009, the most recent year for which statistics are available. Both the number of abortions and the abortion rate dropped by the same percentage.

Some experts theorize that some women believed they couldn't afford to get pregnant.

"They stick to straight and narrow ... and they are more careful about birth control," said Elizabeth Ananat, a Duke University assistant professor of public policy and economics who has researched abortions.

While many states have aggressively restricted access to abortion, most of those laws were adopted in the past two years and are not believed to have played a role in the decline.

Abortions have been dropping slightly over much of the past decade. But before this latest report, they seemed to have pretty much leveled off.

Nearly all states report abortion numbers to the federal government, but it's voluntary. A few states — including California, which has the largest population and largest number of abortion providers — don't send in data. While experts estimate there are more than 1 million abortions nationwide each year, the CDC counted about 785,000 in 2009 because of incomplete reporting.

To come up with reliable year-to-year comparisons, the CDC used the numbers from 43 states and two cities — those that have been sending in data consistently for at least 10 years. The researchers found that abortions per 1,000 women of child-bearing age fell from about 16 in 2008 to roughly 15 in 2009. That translates to nearly 38,000 fewer abortions in one year.

Mississippi had the lowest abortion rate, at 4 per 1,000 women of child-bearing age. The state also had only a couple of abortion providers and has the nation's highest teen birth rate. New York, second to California in number of abortion providers, had the highest abortion rate, roughly eight times Mississippi's.

Nationally since 2000, the number of reported abortions has dropped overall by about 6 percent and the abortion rate has fallen 7 percent.

By all accounts, contraception is playing a role in lowering the numbers.

Some experts cite a government study released earlier this year suggesting that about 60 percent of teenage girls who have sex use the most effective kinds of contraception, including the pill and patch. That's up from the mid-1990s, when fewer than half were using the best kinds.

Experts also pointed to the growing use of IUDs, or intrauterine devices, T-shaped plastic sperm-killers that a doctor inserts into the uterus. A study released earlier this year by the Guttmacher Institute, a nonprofit organization that does research on reproductive health, showed that IUD use among sexually active women on birth control rose from less than 3 percent in 2002 to more than 8 percent in 2009.

IUDs essentially prevent "user error," said Rachel Jones, a Guttmacher researcher.

Ananat said another factor may be the growing use of the morning-after pill, a form of emergency contraception that has been increasingly easier to get. It came onto the market in 1999 and in 2006 was approved for non-prescription sale to women 18 and older. In 2009 that was lowered to 17.

Underlying all this may be the economy, which was in recession from December 2007 until June 2009. Even well afterward, polls showed most Americans remained worried about anemic hiring, a depressed housing market and other problems.

You might think a bad economy would lead to more abortions by women who are struggling. However, John Santelli, a Columbia University professor of population and family health, said: "The economy seems to be having a fundamental effect on pregnancies, not abortions."

More findings from the CDC:

— The majority of abortions are performed by the eighth week of pregnancy, when the fetus is about the size of a lima bean.

— White women had the lowest abortion rate, at about 8.5 per 1,000 women of child-bearing age; the rate for black women was about four times that. The rate for Hispanic women was about 19 per 1,000.

— About 85 percent of those who got abortions were unmarried.

— The CDC identified 12 abortion-related deaths in 2009.

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Justin Bieber won't face charge for May encounter

LOS ANGELES (AP) — Prosecutors decided not to file any charges against Justin Bieber after investigators found no evidence that the pop star had kicked and punched a photographer after leaving a movie theater last month, a document obtained Wednesday states.

Prosecutors had been asked by police to consider filing a misdemeanor battery charge against Bieber, but Los Angeles County sheriff's investigators found no visible injuries, video or photographs to confirm the allegations by the photographer.

Bieber, 18, was leaving the theater in suburban Calabasas with girlfriend Selena Gomez on May 27 when he had the encounter in a parking lot.

A doctor found only superficial injuries, and deputies observed no injuries on the man after the incident, the document states.

Authorities interviewed several witnesses but none reported seeing Bieber kick the man, and they noted that the photographer kept taking photos as the two singers left the location, according to the charge evaluation worksheet prepared by the district attorney's office.

"All the photos and video taken during this incident by the many photographers were obtained and reviewed," the document states. "There are no photos of a physical altercation."

The case was rejected on Oct. 22 and first reported Wednesday by celebrity website TMZ.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Judge rejects 9/11 suit against United

United Airline employees help passengers at the check-in counter in Terminal 1 at Chicago O'Hare International Airport. (Stacey Wescott, Chicago Tribune / November 15, 2012)

Reuters

9:48 a.m. CST, November 21, 2012

United Airlines bears no responsibility for suspected security lapses at a Maine airport that allowed hijackers onto the American Airlines plane that crashed into one of the World Trade Center towers on Sept. 11, 2001, a federal judge ruled.

U.S. District Judge Alvin Hellerstein on Wednesday granted a request by United and its parent United Continental Holdings Inc. to dismiss negligence claims brought by Larry Silverstein, the leaseholder of the World Trade Center property.

The decision concerned the destruction of 7 World Trade Center, the North Tower that collapsed hours after being pierced by debris stemming from the crash of AMR Corp.'s American Airlines Flight 11 into 1 World Trade Center.

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Elmo puppeteer resigns amid new sex allegation

Kevin Clash, who created the persona and voice of Elmo on 'Sesame Street,' has resigned amid a new accusation that he had sex with an under-aged youth. (Nov. 20) (Source: Associated Press)

Reuters

12:59 p.m. CST, November 20, 2012

NEW YORK—

Kevin Clash, the puppeteer behind the “Sesame Street” character Elmo, resigned on Tuesday following new allegations that he had sex with an underage boy, adding to an ongoing controversy involving one of America's most popular children's brands.

The announcement came just a week after another man recanted his claims that Clash, 52, had sex with him when he was 16 years old.

“Unfortunately, the controversy surrounding Kevin's personal life has become a distraction that none of us wants, and he has concluded that he can no longer be effective in his job and has resigned from Sesame Street,” New York-based Sesame Workshop, the company behind the show, said in a statement.

“This is a sad day for Sesame Street,” it added.

In a lawsuit filed on Tuesday, Cecil Singleton is seeking more than $5 million in damages from Clash. Singleton claims he met the then 32-year-old puppeteer in 1993 in a gay chat room when he was 15.

It added that on numerous occasions over a period of years Clash engaged in sexual activity with Singleton.

A representative for Clash was not immediately available for comment on Tuesday.

The unnamed 23-year-old man who first accused Clash recanted his claims last week, saying the relationship was consensual. Clash had denied the allegations and acknowledged a past relationship with his accuser. He added the pair were both consenting adults at the time.

“I am a gay man. I have never been ashamed of this or tried to hide it,” Clash said at the time, adding that he was taking a break from the TV show to deal with the situation.

Sesame Workshop said the allegations involving Clash came to its attention in June when the first accuser first contacted the company by email.

The Elmo character debuted on “Sesame Street” in 1979. While Clash was the third performer to animate the child-like shaggy red monster, Sesame Workshop credits him with turning Elmo into the international sensation he became.

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