American Apparel founder Dov Charney went after New York hedge fund Standard General in a new lawsuit filed Thursday.
The complaint, made in Los Angeles Superior Court, accuses the firm of defamation for public statements made about Charney’s termination from American Apparel. Charney maintains he was fired without cause as part of an alleged takeover of American Apparel by Standard General. The complaint goes on to say those public statements made about his firing impeded the former ceo from regaining control of the company via outside assistance.
The board suspended Charney in June for what it said was misconduct and violation of company policy. Charney was fired in December following an internal investigation, which Charney contends in his lawsuit was not done by an independent third party.
“Dov Charney and his associates continue to file frivolous, meritless lawsuits at a breakneck pace,” a Standard General spokesperson said. “The facts speak for themselves, and we are confident that Mr. Charney will be held accountable for this knowing, intentional abuse of the legal system.”
Charney is seeking at least $30 million in damages in addition to attorney’s fees.
The lawsuit is the latest in a series of legal complaints lodged against the firm, some members of the American Apparel board or the apparel company itself. These include one seeking class action status by former employees of the company in relation to the most recent round of layoffs there. Another, filed by a former finance executive, alleges his termination from American Apparel was retaliation for issues he brought to light against the company’s former chief financial officer.