Dov Charney Is Suing a Major American Apparel Investor for $30 Million
LatestGetting a taste of his own medicine, ousted American Apparel founder Dov Charney is not going quietly: he’s filed a lawsuit against Standard General, the hedge fund that has a large presence on American Apparel’s Board of Directors and was directly responsible for Charney’s firing.
Apparently his attempts to get his company back aren’t working out like he planned. Charney—who is, according to him, broke—is demanding $30 million for “defamation and intentionally interfering with economic relations,” plus attorney’s fees, as the LA Times reports. He’s claiming that Standard General threatened to “ruin” him if he didn’t leave the company, and that their investigation into his bad behavior was set up to “manufacture” reasons to fire him.
“The Charney ‘investigation’ was a sham, a witch hunt, a whitewash designed” by Standard General, according to the lawsuit.
Standard General told Charney that if he did not give up control and sign over his voting rights, the hedge fund “would destroy his character and ruin Charney,” the lawsuit says.
How would one go about destroying the reputation of a man whose reputation has already been destroyed by himself? Thoughts welcome.