Braudy, who was hired by Douglas' production company in the late 1980s, claims she was subjected to frequent harassment by the actor when she worked with him.
According to the Hollywood Reporter, the 73-year-old actor has been accused of sexual misconduct by journalist Susan Braudy, who claimed that the star unzipped his trousers and m. ****d in front of her.
'He thought he was the king of the world and that he could humiliate me without any repercussions, ' she said.
Brady worked for Douglas for three years and said during that time her engaged in sexually-charged conversations with her.
Braudy, a journalist and author, says the actor unbuckled his belt, put his hand into his pants and fondled himself in her presence. "When he sweetly asked me to sign a confidentiality agreement, I knew Michael was preparing to fire me", she said, describing how, with her lawyer's guidance, she exited the company without signing a confidentiality agreement. "People were frightened for me", she told NBC.
He called it a "complete lie, fabrication", saying: "I will fess up to colourful language, but the issue of masturbating in front of her?"
"I pride myself on my reputation in this business, not to mention the long history of my father and everything else", Douglas said. "Maybe she is disgruntled her career didn't go the way she hoped and she is holding this grudge", he toldDeadline. Douglas also flatly denied all the allegations over the course of the interview, while his wife, Catherine Zeta-Jones, did the same in an interview with People: "There was no other way than to be pre-emptive in a story that had to be watched".More news: Putin takes dip in icy Russian lake on Epiphany
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She said she supported "110 percent" the Time's Up and #MeToo movements against sexual misconduct.
Braudy maintains that his indiscretions started with uncomfortable sexual discussions he'd have: talking about an affair with co-star Kathleen Turner, commenting on Braudy's sex life and her body. "I was very scared".
In an interview with Entertainment Tonight Sunday, Zeta-Jones voiced her support for her husband, especially his decision to speak out ahead of Braudy sharing her story first.
"Michael unzipped his chinos and I registered something amiss". "You helped me, thank you, thank you".
"I made sure that I was never ever ever alone with him again", Braudy added, according to NBC News.
Braudy said that she was sacked six months later after dodging attempts by Douglas to sign a confidentiality agreement. "He asked a producer, 'Why does Susan dress like a pregnant nun?' Another time I laughed loudly and he shouted to a group of agents, 'Oh yeah, she's a screamer!" She kept putting him off and never signed such an agreement until she was eventually let go.
The accusation come amidst the rise of the MeToo and Times Up movements, which have seen thousands of women come forward and share their stories of assault, harassment and bullying at the hands of powerful men.