The controversial founder has accused the global retailer of defamation, claiming that the company falsely stated that he was fired for misconduct, a conclusion based on an independent investigation. Charney filed a lawsuit against Standard General, which is the hedgefund that controls the retailer’s board of directors.
"There was no independent, third-party investigation of Charney that led to his termination,” the filed complaint read. Dov Charney, the founder and former CEO of American Apparel
Charney described the investigation as a “secret conspiracy” and according to Bloomberg Business, the board was “the very people who wanted to fire Charney, who conspired against him to be in control of the company”.
"I gave them my entire life’s work and they agreed to put me back in. But, instead, they used this investigation to fire me. They betrayed me," said Charney last year following his dismissal from the company he launched in 1989.
The 46-year-old Canadian founder is seeking $30 million (approx. £19.3m) in damages for what he claims are “false, defamatory and libellous” accusations, resulting in damage to his reputation, shame and emotional distress.
In pictures: American Apparel