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.]
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