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American Apparel granted restraining order against former CEO Dov Charney American Apparel granted a restraining order against founder Dov Charney
(about 7 hours later)
American Apparel Inc said it has been granted a restraining order against ousted chief executive and founder Dov Charney. American Apparel has been granted a restraining order against its founder and former chief executive, Dov Charney.
The order temporarily restrains him from breaching terms of a standstill agreement signed last year, including seeking removal of the company’s board members and making negative statements in the press against the company or its employees, American Apparel said in a regulatory filing on Tuesday. The order, the latest salvo in an ongoing legal skirmish, temporarily restrains Charney from breaching terms of an agreement that prevents him from seeking removal of the company’s board members and making negative statements in the press against the company or its employees, American Apparel said in a regulatory filing on Tuesday.
The Delaware court of chancery granted the restraining order on Monday. The order, issued Monday by the Delaware court of chancery, expires in July.
The company sued Charney in May for violating the standstill agreement. The retailer sued Charney in May for breaching a so-called “standstill” agreement preventing him from seeking board changes and from publicly attacking the company’s executives.
Charney was fired in December, six months after he was suspended for allegedly misusing funds and for allowing the posting on the internet of nude photos of a former female employee who had accused him of sexual harassment. Charney, a Canadian who founded American Apparel as a T-shirt wholesaler in 1998, was fired by the company last December after a series of scandals including allegations of sexual misconduct. The company said it had terminated his position “for cause” after an internal investigation.
Charney has filed an arbitration claim and sued American Apparel for $20m accusing the company and Colleen Brown, the company’s chairwoman, of defamation.
That suit is one of a series that have been launched by Charney’s lawyers. Charney’s lawyer has also backed former employees who have complained to the National Labour Relations Board that American Apparel has blocked workers seeking to unionize. The lawyers are also supporting a suit by 200 former employees who claim they were improperly dismissed.
American Apparel has denied the claims and characterised them as an attempt by its former founder to wrest back control of the company.