Schlöndorff returned to Hollywood for "Palmetto" (1998). In a noir plot, the film stars Woody Harrelson as a falsely accused journalist who was sent to jail after uncovering corruption in the local government. After getting out of jail and unable to find work, he encounters Rhea Malroux (Elisabeth Shue), a "femme fatale" who propositions him to help her extort money from her millionaire husband. The film was not a financial success and was Schlöndorff's last film in the US to date.