American Apparel’s former chief executive Dov Charney is reportedly suing the US fashion retailer over allegations of defamation and emotional distress.
A lawsuit was filed in California’s Superior Court yesterday seeking a minimum of $20m in damages, according to Reuters. Charney was suspended from American Apparel in June over allegations of sexual misconduct, but was retained by the Los Angeles-headquartered retailer as a consultant.
However, American Apparel appointed Paula Schneider as a replacement chief executive as Charney left the business in December.
In the lawsuit, Charney reportedly claims that the firm falsely stated that he was fired for misconduct.
However, American Apparel reportedly said today it will “vigorously dispute” Charney’s allegations.
Charney, who helped launch American Apparel in 1989, is also believed to have launched a $30 million defamation lawsuit last week against Standard General, one of the retailer’s largest investors.
American Apparel has yet to resond to a request for comment.