Variety is appealing a judges ruling denying its bid to dismiss a defamation lawsuit from Francis Ford Coppola, who sued the outlet over a story about alleged misconduct and the absence of traditional checks and balances in place on the set of Megalopolis to protect against sexual harassment.

The legal battle revolves around a Variety report last year that Coppola appeared to act with impunity on the production. It reported, citing two sources, that his behavior was alleged to be unprofessional and that the director kept leaping up to hug and kiss several women. Coppola subsequently demanded a correction and retraction from the outlet, which declined to do so. He later sued for defamation while denying claims of sexual harassment from one of the movies extras, who filed a lawsuit against the director over unwanted kissing and touching. The court, in an order issued on Feb. 19, declined to dismiss the complaint, which Variety had argued is intended to chill free speech. Los Angeles Superior Court Judge Christopher Lui found that assertions in the story that Coppola ruined a nightclub scene by inserting himself into the shot is susceptible to a defamatory meaning because it suggests incompetence as a director.

(Variety is owned by Penske Media Corporation, which is also the parent company of The Hollywood Reporter.)

In its ruling, the court also said that a video featured in Varietys story purportedly showing him trying to kiss some of the extras doesnt provide conclusive evidence that he engaged in inappropriate behavior since he couldve been leaning in toward them to whisper.

Further, even if Plaintiff did kiss the women, whether or not they were uncomfortable and thus did not welcome hugging and/or kissing a defamatory implication that Plaintiff was committing unwanted touching (battery) is something that can only be ascertained through witness statements, Lui wrote.

Other assertions in the story that the court said could rise to the level of defamation include claims, attributed to an anonymous source, that crew members were uncomfortable with Coppola kissing background actors and that he got on a microphone and announced in earshot of everyone in the room, Sorry if I come up to you and kiss you. Just know its solely for my pleasure.'

The order stated, Again this sets forth provably false statements: either crew members were uncomfortable because Plaintiff was engaging in kissing and hugging which created a hostile/sexually harassing work environment, or not. This would tend to injure Plaintiff in his profession as a director. The fact that the statements were couched as opinions, i.e., being uncomfortable with Plaintiffs behavior, does not immunize them from being defamatory.

The court sided with Variety on arguments that the lack of a human resources department and traditional checks and balances to protect against sexual harassment dont rise to the level of defamation.

In its bid to dismiss the lawsuit, Variety argued that the article as a whole doesnt convey a defamatory meaning since it noted that Megalopolis came in on time, on budget and quotes other sources saying it was an honor to work with Coppola.