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Charney sues American Apparel’s shareholder

dov-charney
Dov Charney, founder and ousted CEO of American Apparel Inc., has sued the New York private equity firm Standard General, the company’s Shareholder.

The lawsuit, filed Thursday in Los Angeles Superior Court, alleges defamation of character, false light and intentional interference with actual and prospective economic relations. He is seeking $30 million in damages. $10 million in general and compensatory damages, and $20 million in punitive damages.

Standard Master General Fund and Standard General Ltd. are also parties to the complaint.

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Charney has been the subject of highly publicized claims that he misused corporate assets, abused his executive position and sexually harassed employees.

According to CourtHouseNews the spokesman for Standard General dismissed the claims, saying, “Dov Charney and his associates continue to file frivolous, meritless lawsuits at a breakneck pace. The facts speak for themselves, and we are confident that Mr. Charney will be held accountable for this knowing, intentional abuse of the legal system.”

An American Apparel spokeswoman responded also, saying, “These meritless claims serve as public relations opportunities now, but they will each will fail the test when put before a judge. We are confident we will succeed on every one of these in the proper venue.”

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