Susan Braudy appeared Friday on NBC's "Today" show.
Braudy, a journalist and author, says Douglas unbuckled his belt, put his hand into his trousers and fondled himself in her presence. She says a friend later cautioned her not to tell anyone.
Douglas, a two-time Oscar winner, told Deadline earlier this month that he anticipated an upcoming report would contain an allegation by a former employee that he acted inappropriately in front of her about 32 years ago. He called it a "complete lie, fabrication." He says his wife, Catherine Zeta-Jones, "has been very supportive."
Douglas' publicist said he would have no further comment.
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