Dov Charney To Sue American Apparel

3350-adbigPhoto: Courtesy of American Apparel.
Despite our counsel to take the gold lamé and run, American Apparel's suspended president and CEO, Dov Charney, has his outdatedly bespectacled eyes set on a lawsuit. The L.A. Times writes that on Monday, his attorney, Patricia Glaser, filed a petition with the American Arbitration Association against the company, "alleging wrongful termination, breach of contract and retaliation, among other issues." She sent a letter to the board last week and demanded "the immediate scheduling of a meeting" to "occur no later than Monday, June 23, 2014," or her firm "intend[ed] to pursue legal action against the Company on Mr. Charney's behalf." But, the board "see[s] no point in having a meeting with Dov" at the moment, Allan Mayer, American Apparel's new co-chairman, told The L.A. Times.
Charney also contested his looming termination in a filing with the Securities and Exchange Commission on Monday, and is gathering a "posse," to use Women's Wear Daily's terminology. Per the trade, his SEC paperwork claims he and "certain people, including stock holders…who expressed support for his continued leadership" are examining "potential changes to the composition of the board and management of [American Apparel]." He doesn't name names, and it's unlikely a roll call would include any board members, who were unanimously in favor of his ouster; however, as the company's largest shareholder with 27.2%, Charney's probably mingled with the others.
The weekend's news cycle contained an outpouring of reasons for Charney's dismissal, among them: his knowledge of a blog displaying nude photos of an employee who alleged was his "sex slave"; his refusal to participate in sexual-harassment training; and his payment of significant severance packages to former employees using company money to protect himself from litigation. He reportedly purchased airline tickets for his parents with American Apparel's funds and stayed in corporate lodgings while not on business. (Read his termination notice in full here.)
In her letter, Glaser dubs the charges "completely baseless," and adds, "Most involve activities that occurred long ago (if at all) and about which the Board and the Company have had knowledge for years." Deciding who's worse among this group is akin to picking out an AA bodysuit — plenty of heinous choices that all cause discomfort.

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