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AMERICAN APPAREL SUES DOV CHARNEY FOR VIOLATING AGREEMENT

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DOV CHARNEY

May 15 (Reuters) – Apparel retailer American Apparel Inc sued its ousted chief executive Dov Charney for violating his standstill agreement with the company.

The company said on Friday it has filed a suit with the Delaware Court of Chancery.

Charney on Wednesday sued the company and Chairman Colleen Brown, alleging defamation and mental and emotional distress.

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.

(Reporting by Anannya Pramanick in Bengaluru; Editing by Joyjeet Das)

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