Dov Charney, fired as CEO of American Apparel in December after an internal investigation revealed personal and professional misconduct, plans to seek up to $35 million in damages from the company. The Los Angeles clothing manufacturer and retailer fired Charney after its investigation found evidence of inappropriate behavior with employees and misuse of company funds. The company said Charney’s improper actions included staying in corporate apartments when he wasn’t on business, using company funds to buy airline tickets for his parents and allowing the online posting of nude photographs of a former worker who was suing him. Charney has been the subject of lawsuits that allege he had inappropriate sexual conduct with female employees. Charney’s lawyer at the time denied the allegations, accused the company of firing Charney without cause and filed a petition with the American Arbitration Association alleging wrongful termination, breach of contract and retaliation. The company said the SEC’s investigation is a non-public “fact-finding inquiry” to try to find out if any legal violations took place.
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