Michael Richards Incident
The Laugh Factory made headlines when Michael Richards went into a racist outburst toward two black men who were heckling him during a November 17, 2006 standup comedy routine at the venue. In response to the Michael Richards incident, The Laugh Factory banned comedians from using the word "nigger" in their acts. The first known incident involving this new rule involved Damon Wayans (himself an African-American), who used the word 16 times in a 20 minute show. He was fined $320 ($20 for each offense) and given a 3-month ban from the club. The ban actually lasted just a month as he was back performing in January.
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