Michael Douglas, seen with wife Catherine Zeta-Jones in November last year, has denied the allegations. Photo / Getty Images
Michael Douglas has sensationally come forward to deny that he sexually harassed a woman 32 years ago.
The double Oscar winner spoke to Deadline after he says he was approached by The Hollywood Reporter who provided the claims from the woman to him, the Daily Mail reported.
The star says the woman, a blogger, alleged he masturbated in front of her - and he's coming forward now as his children are terrified the 73-year-old will be labelled a sexual predator.
In the shocking new interview, Douglas says "he felt the need to get ahead" of the "cautionary tale".
The Behind the Candelabra actor revealed he was approached about the allegations just before Christmas - and on the same day his son Dylan was accepted to college.
"When we were all ecstatic, I got a message from my attorney that The Hollywood Reporter wanted to do a story about an employee that worked for me approximately 32 years ago," Douglas told Deadline.
"She claims that, one, I used colourful language in front of her, not at her, but that I used colourful language.
"Two, she claims that in conversations I had in front of her, on the phone, that I spoke raunchily, or dirtily with friends of mine, in private conversations," Douglas said.
"I fired her eventually, for the work she was doing, but three, she claims that I blackballed her from the industry and stopped her from getting another job."
Finally, Douglas says the allegations that he masturbated in front of her are far from the truth.
"This is a complete lie, fabrication, no truth to it whatsoever."
The reporter who approached him also informed that the woman confirmed she was never touched, or, in her words, "harassed" by Douglas.
The actor then replied, "okay... so I didn't know where this comes from."
Around the same time, the now father-of-three had been producing and filming for the 1985 action romance, The Jewel of the Nile.
He said that, throughout his career, he's prided himself in keeping a good reputation in the business.
"It's extremely painful," Douglas went on. "I don't have skeletons in my closet, or anyone else who's coming out or saying this."
He suggested that while the accuser might still be "disgruntled" over her career fallout, he's disappointed his family is now exposed to the consequence of embarrassment.
"The part that hurt the worst is having to share something like this to your wife and your children," added Douglas.
"My kids are really upset, has to go to school worrying this is going to be in some article about me, being a sexual harasser. They're scared and very uncomfortable."