Dov Charney files defamation lawsuit against American Apparel

New York - In the ongoing saga that is American Apparel vs. Dov Charney, Charney has filed another lawsuit against American Apparel. According to a lawsuit filed last Friday in a Los Angeles Superior Court, Charney is suing both American Apparel and former board member David Danziger for defamation among several other complaints. Earlier this month, Danziger resigned from the board. Paula Schneider, American Apparel's current CEO, took over his seat on the board.

According to the complaint, Charney is seeking at least 30 million dollars in damages, in addition to hundreds of millions of dollars in lost profits, benefits, and income. According to legal documents, the main focus of this lawsuit is Charney's allegation that the defendants collaborated to prevent him from taking back control of the company he was the founder and CEO of until June of last year by making false statements in regards to a criminal investigation surrounding him.

The Dov Charney and American Apparel legal battle continues

The new lawsuit from Friday just adds to the cornucopia of lawsuits involving the company, with several others involving former employees and hedge fund Standard General. American Apparel has fought back against Charney with a lawsuit they filed in May in the Delaware Court of Chauncery. The lawsuit states that Charney was in violation of his standstill agreement and sought a temporary restraining order against him.

A judge granted the order, this preventing Charney from attempting to remove any members of the board, or make any disparaging remarks in regards to American Apparel and any current or former employees of the company. “[This] complaint is yet another example of the habitual nuisance lawsuits that Dov Charney and his lawyer continue to file, and which we continue to defeat (as has been reflected by the recent rulings and stipulations in our favor),” a company spokesperson said. Things haven't been looking good for the company, but, if they can survive this Dov Charney saga they might be able to rebound.