Former American Apparel CEO Dov Charney is seeking $40 million in damages
The label’s founder strikes back (again)
Following his official termination as the CEO of the label he founded – American Apparel – in December 2014, for misusing company funds and other unacceptable behaviour, Dov Charney is now seeking $40 million in damages.
Filing a lawsuit against the label that he founded and helped bring to the level of success it enjoys today, Charney is claiming a breach of employment contract as well as a series of other lawsuits, which are yet to be revealed at present.
The damages include $6 million in severance, $10 million for emotional stress, $1.3 for vacation-time pay and 13 million shares of the company.
Following the lawsuit, the U.S. Securities and Exchange Commission will now conduct an investigation into Charney's dismissal from American Apparel. This will undoubtedly be another blow for the American fashion house, which has recently reported loses of $28 million for the fourth quarter.