After being ousted from the company he founded, American Apparel’s former CEO, Dov Charney submitted a lawsuit claiming the company was in breach of owing him $40 million in damages, his attorney said.
“There will be other lawsuits we will be filing against the company which they are aware of but have not revealed to the media,” attorney Keith Fink said in an email reply to Reuters.
The board pushed Dov out this past December after a scandal surfaced with a former employee as well as allegedly misusing funds. The claims for damages, first reported by Bloomberg, include in excess of $6 million in severance, $1.3 million in vacation-time pay, $10 million for emotional distress and 13 million shares of the company. Charney, 45, launched AA’s humble beginnings at the ripe age of 19 in 1989 and had been at the helm since 2007, when the company went public.
American Apparel, which reported a $28 million loss for the fourth quarter on Wednesday, said it incurred about $3.8 million in legal and consulting fees in the quarter related to its investigation into Charney.