Former American Apparel CEO Dov Charney Is Seeking $40 Million USD in Damages

Following his termination as American Apparel CEO last December for the alleged misuse of company funds and other questionable behavior, Dov Charney is now seeking $40 million USD in damages from the very company he founded and helped bring to the forefront of the fashion industry. Charney is claiming a breach of employment contract, as well as a series of other lawsuits that have not been revealed to the media as of yet. The damages include $6 million USD in severance, $1.3 million USD in vacation-time pay, $10 million USD for emotional stress, and 13 million shares of the company. As a result the U.S. Securities and Exchange Commission will be conducting an investigation into Charney’s dismissal. The latest allegations continues to pile on the woes for the Los Angeles-based company, having recently reported a loss of $28 million USD for the fourth quarter.