Controversial American Apparel chief is fired after years of litigation against the company
The founder and chief executive officer of a sucdessful clothing company known for its suggestive advertising has been fired for cause.
American Apparel Inc. said it terminated Dov Charney after an internal investigation found he had misused company funds and allowed a worker to post online nude photos of a former employee who sued him, according to the Los Angeles Times (sub. req.), the New York Times (reg. req.) and the Daily Mail.
Charney said he is disappointed, but “I’m proud of what I created at American Apparel and am confident that, as its largest shareholder, I will have a strong relationship with the company in the years ahead.” He also said he wishes the Los Angeles-based company continued success.
His firing came after months of negotiation. Charney unsuccessfully sought to retain a role as a consultant after being suspended from his job in June and, along with an investment firm, sought to gain control of American Apparel by purchasing more stock, the articles say.
Under Charney’s oversight, he and American Apparel have repeatedly been involved in contentious company-related litigation and a number of suits have made sexual harassment claims. As one case neared trial early in 2008, Charney and his lawyers argued that there were legitimate business reasons for him to attend meetings in his underwear, as well as to create a “sexually charged workplace.”
Related coverage:
ABAJournal.com: “Court Reveals Sham Arbitration Pact to Clear American Apparel CEO”
ABAJournal.com: “Lawyer Who Sued Company CEO is Target of Claimed Cyber-Attack Campaign”
ABAJournal.com: “Woody Allen Settles Billboard Lawsuit Against American Apparel for $5M”
ABAJournal.com: “Plaintiffs’ New Suit Claims Ex-Employer Clothing Co. Posted Their Nude Photos Online in Fake Website”
