Home Videos Photos Shop
PerezHilton CocoPerez Ariana Selena G. Kim K. Real Housewives PerezTV

Dov Charney News Archive

Brooklyn Judge Halts American Apparel Sex Suit

| Filed under: Icky Icky PooLegal MattersDov CharneyAmerican Apparel

judge-halts-american-apparel-sex-lawsuit-against-dov-charney.jpg

Looks like luck may be on Dov Charney's side once again.

A Brooklyn judge slammed the breaks on the $250 million sexual harassment lawsuit against American Apparel and ordered a hearing to determine if it can continue.

As AA mentioned in their response, ex-employee Irene Morales signed "an agreement to submit any future claims to confidential binding arbitration" when she quit last year.

Charney's lawyer Stuart Slotnick added Irene "brought this action after making a number of extortion-like threats to expose the company to a threatened avalanche of litigation and negative publicity".

Umm, did he forget who he's representing? The only publicity American Apparel and Dov have ever known is negative!

Slotnick also asked the judge to sanction Morales for bringing "frivolous litigation".

Her lawyer Eric Baum, on the other hand, maintains that the arbitration agreement is "improper and unenforceable."

[Image courtesy of American Apparel.]

Permalink / Comments Off

American Apparel Responds To Sex Slave Lawsuit

| Filed under: Icky Icky PooLegal MattersDov CharneyAmerican Apparel

american-apparel-responds-to-sex-slave-lawsuit.jpg

American Apparel quickly released a statement after news broke take founder Dov Charney is being sued for allegedly making an employee his sex slave.

The sexually explicit company wrote:

We have been informed today that [redacted], a former employee of American Apparel who left the company without complaint and resigned with a letter of gratitude regarding her positive experience at the company, has filed a sexual harassment lawsuit in New York against the company.

Upon her resignation, [the employee] acknowledged in writing that she had no pending claims against the company and signed a severance agreement which included a full release of claims and an agreement to submit any future claims to confidential binding arbitration. All American Apparel's employees are subject to the same confidential arbitration agreement signed by [the employee] in order to protect the privacy interests of employees and former employees, and to prevent predatory plaintiffs and their attorneys from attempting to use the media to extort the company. Such an arbitration process was initiated by the company against [the employee] several weeks ago.

The company intends to file a formal complaint with the NY state bar seeking disciplinary action against [the employee's] lawyers who we believe are engaged in an illegal conspiracy to extort money from American Apparel. We are very confident that [her] claims will be promptly referred by the court to confidential binding arbitration where her claims and the company's counter-claims will be resolved, we believe fully in favor of the company.

Inneresting.

What do U think of the latest American Apparel scandal?

Tweet us your thoughts!

[Image courtesy of American Apparel.]

Permalink / Comments Off

American Apparel's Dov Charney Sued For Making Teenage Employee His Sex Slave

| Filed under: Icky Icky PooLegal MattersDov CharneyAmerican Apparel

dovcharney__opt.jpg

Gross!

American Apparel's resident creep Dov Charney is once again found himself in the midst of a lawsuit and surprise, surprise it involves sex.

According to the papers filed with the Brooklyn Supreme Court, Dov told the staffer if she wanted to keep her job and be promoted she would have to have sex with him when she turned 18.

So, on the day of her 18th birthday the AA employee went to his NYC apartment where Charney allegedly made her his sex slave for the day.

The suit claims once she was inside the apartment Dov "dragged her to the bedroom, threw her on the bed, got on top of her and forced her to perform another act of fellatio, nearly suffocating her in the process." He then went on to hold the girl captive for a few hours and made her perform even more sexual acts.

Sick!

Apparently Dov had been harassing the employee months prior to the sex slave incident and told her she would be fired if she didn't detail her sexual history, engage in "sexual functions" and send him explicit pictures.

The former employee eventually quit after spending the summer in El Lay where she was "subjected to extreme psychological abuse and torment" and had to undergo psychiatric treatment.

Awful.

She's seeking an astounding $250 million.

[Image via Getty Images.]

Permalink / Comments Off

Auditors Claim American Apparel Withheld Financial Info

| Filed under: Dov CharneyAmerican Apparel

american-apparels-former-auditors-claim-they-withheld-financial-information.jpg

And the saga continues.

American Apparel's former auditors have fired off a letter to the Securities and Exchange Commission notifying them about the clothing company's filings for the 2009 financial year.

According to Deloitte & Touche, who abruptly resigned as AA's accounting firm in July, their reports can't be trusted because Dov Charney and the other execs withheld financial information.

That can't be good.

American Apparel has already released a statement saying D&T's claims aren't true, but we wouldn't be surprised if the SEC does a little investigation next year.

[Image via Getty Images.]

Permalink / Comments Off

More Losses For American Apparel

| Filed under: Business BlitzDov CharneyAmerican Apparel

american-apparel-posts-3rd-quarter-loss-of-almost-10-million.jpg

Will there ever be good news for American Apparel?

The troubled clothing company submitted their 3rd quarter results to the SEC on Tuesday, and just like the quarter before they posted a loss.

AA reported net sales were down $9.5 million between the months of July and September due to increased production costs.

OK, whatever you say Dov.

[Image via AP Images.]

Permalink / Comments Off

American Apparel Finally Hands Over Their 2nd Quarter Results

| Filed under: Business BlitzDov CharneyAmerican Apparel

american-apparel-reports-14-million-loss-in-second-quarter.jpg

Took 'em long enough!

After months of delays, American Apparel handed over their not so shocking second-quarter results to the SEC on Monday.

According to the report, AA had a loss of $14.7 million and "may not have sufficient liquidity necessary to sustain operations for the next 12 months."

Ouch.

The report goes on to say it's "probable that beginning Jan. 31, 2011, the company will not be in compliance with the minimum consolidated EBIT covenant…".

In other words, American Apparel doesn't think they'll earn the $20 million they said they would in their newest agreement with Lion Capital.

Double ouch!

Dov Charney & Co are working to make amendments so they'll remain in compliance, however there's "substantial doubt that the company will be able to continue as a going concern."

Yikes.

Better stock up on your generic clothes now!

[Image via AP Images.]

Permalink / Comments Off

American Apparel Avoids Bankruptcy

| Filed under: Dov CharneyAmerican Apparel

American Apparel saved from bankruptcy by lender Lion Capital

Lion Capital has decided to spare American Apparel from bankruptcy, for now.

As part of the new agreement, AA must increase their profitability to stay in their lender's good graces. By January 31st of next year, the clothing company must have made $20 million in earnings before interest, taxes, depreciation, and amortization over the past 12 months.

If they make it to 2013, Dov Charney & Co. will have to pull in $80 million to still be in compliance with the new terms set by Lion Capital.

Think they can do it???

[Image via AP Images.]

Permalink / Comments Off