Dov Charney, the ousted chief executive of American Apparel, has filed a USD30 million defamation lawsuit against a New York hedge fund that controls a large stake in the clothing company he founded, and which refused to support his return.
The lawsuit filed Thursday in Los Angeles Superior Court is one of several arising from Charney’s suspension last June and dismissal six months later.
American Apparel attributed the suspension to Charney’s alleged misuse of company funds and failure to stop a subordinate from posting false blog entries about former employees.
(Source: CNBC)