LOS ANGELES — American Apparel faces yet another lawsuit, this time from a former finance executive at the company.
The Los Angeles-based clothing maker and retailer is named a defendant in a complaint filed Monday in L.A. County Superior Court for the Central District by an attorney for David Nisenbaum, former American Apparel director of manufacturing accounting analysis and audit. Nisebaum alleges in his complaint that he was fired in a retaliatory move for issues he brought to management relating to former chief financial officer John Luttrell.
Nisenbaum joined the company in November 2012 and is a former cfo at the tattoo-inspired apparel company Ed Hardy. American Apparel severed ties with Nisenbaum in June 2014.
The company had hired Nisenbaum to act as part of a system of checks and balances to then-cfo Luttrell and reported to founder and ousted chief executive officer Dov Charney, according to the court filing.
The lawsuit lays out a number of allegations against Luttrell, among them the mismanagement of a $220 million bond financing deal in 2013. The complaint also blames Luttrell for the rocky launch of the company’s distribution center in La Mirada, Calif., which the complaint said ended up losing the company between $30 million and $40 million due to failures on the part of a new billing system and embezzlement, among other issues.
The lawsuit follows a complaint made by three other former company employees that was filed last week and seeks class action status.
“Generally, we don’t comment on personnel matters, especially those that precede the current management team,” an American Apparel spokesperson said.