The lawsuit alleges that Gaiman coerced sexual services from his former live-in nanny, and that Palmer "knowingly benefited" from Gaiman's actions.

A former nanny is seeking damages upwards of $1M, claiming she was forced to perform sex acts as a condition of pay.

Neil Gaiman, the prolific author of 'The Sandman' and other works, was accused in a lawsuit Monday of violent sexual abuse of a babysitter.