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Dov Charney and American Apparel Are Suing One Another — Again

Will this madness never end?


Dov Charney,   chairman and chief executive officer of American Apparel.

Dov Charney and his former firm American Apparel are trading law suits. Charney was the one who fired the first shot in this round of fighting between the two.

Will this high profile divorce ever end? Will the two sides ever just come to an agreement and shut the hell up already, leaving the rest of us free from having to read and write about their childish behavior?

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This marks the third time that Charney has filed a law suit since March. It ousted him from power last December. His first suit sought $40 million in damages for, oh who cares. That one was settled. Earlier this month he filed suit against hedge fund Standard General for $30 million because it supposedly defamed him.

That firm was involved in Charney’s failed attempt at a hostile takeover of American Apparel last year.

Now the company’s former owner and CEO filed suit last Wednesday against it and its Chairman Colleen Brown, alleging defamation and mental and emotional distress. American Apparel returned fire on Friday with a suit of its own filed in the Delaware Court of Chancery, alleging that Charney had violated his standstill agreement with the company.

After Charney’s suit was filed, the clothing manufacturer stated in a regulatory filing, “The company believes that such claims are without merit and intends to vigorously dispute the validity of these claims.”

American Apparel’s founder is seeking $20 million in damages because Brown sent a letter to all American Apparel employees claiming that Charney had agreed in writing to never return to the company in any capacity. He, however, swears that he never signed such an agreement.

Maybe American Apparel will just go out of business before any of this comes to court. It posted a $26 million loss for the first quarter of the year. A lot of that money probably went to its legal fees.

Charney was thrown out by the company which he created last year after a number of allegations of sexual improprieties and inappropriate behavior surfaced. He was also charged with misappropriating company funds.

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