American Apparel CEO, notorious creeper, and subject of numerous sexual-harassment lawsuits, Dov Charney, has been hit with his biggest legal challenge yet: a quarter-of-a-billion dollar (yes, billion) lawsuit from a former employee, who claims Charney sexually harassed her while she was still a seventeen-year-old working for the company, then forced her to have sex with him on her eighteenth birthday.
According to the suit, Charney terrorized the woman with an escalating series of sexual demands, threatening to fire her if she didn't comply, then insisted that she come to his apartment the day she became legal. Once she arrived, according to the suit, Charney answered the door in his underwear, forced her onto her knees to perform fellatio, then "dragged her to the bedroom, threw her on the bed, got on top of her and forced her to perform another act of fellatio, nearly suffocating her in the process," and "held [her] prisoner" in the apartment for several more hours after that.
American Apparel, which is currently valued at just $80 million, is having none of it, and just released the following statement in response to the charges:
"We have been informed today that Irene Morales, a former employee of American Apparel who left the company without complaint and resigned with a letter of gratitude regarding her positive experience at the company, has filed a sexual harassment lawsuit in New York against the company. Upon her resignation, Ms. Morales acknowledged in writing that she had no pending claims against the company and signed a severance agreement which included a full release of claims and an agreement to submit any future claims to confidential binding arbitration. All American Apparel's employees are subject to the same confidential arbitration agreement signed by Ms. Morales in order to protect the privacy interests of employees and former employees, and to prevent predatory plaintiffs and their attorneys from attempting to use the media to extort the company. Such an arbitration process was initiated by the company against Ms. Morales several weeks ago. The company intends to file a formal complaint with the NY state bar seeking disciplinary action against Ms. Morales' lawyers who we believe are engaged in an illegal conspiracy to extort money from American Apparel. We are very confident that Ms. Morales' claims will be promptly referred by the court to confidential binding arbitration where her claims and the company's counter-claims will be resolved, we believe fully in favor of the company."