Plaintiff Irene Morales. Courtesy of NY Daily News.
Two weeks ago we published a cover story on American Apparel's pending bankruptcy and CEO Dov Charney's sexual assault lawsuits. Well, it seems that he's adding another to the list. Irene Morales, 20, is filing a $260 million suit against Charney. According to the law suit documents, Charney invited her over to his Manhattan apartment, greeted her in nothing but briefs, and “forced her to go down on her knees just inside the front door and perform fellatio upon him.” Then Charney reportedly forced Morales to perform the same act on the bed, “nearly suffocating her in the process.” He allegedly kept her captive in the apartment for several hours afterward, repeatedly making her perform these acts. Morales' lawyer claims that this has been going on for eight months before Morales resigned.
In the past, all of the lawsuits against Charney were settled and have never reached trial. Although this seems to be the most explosive one of them all, it is doubtful whether this one will reach the courtrooms either. American Apparel said in court papers Wednesday that Morales' complaint "is an improper attempt to garner media attention and exert pressure." Charney's lawyer, Stuart Slotnick, said Morales "made a number of extortion-like threats to expose the company to a threatened avalanche of litigation and negative publicity." Two documents were submitted to the court, supposedly signed by Morales agreeing not to sue the company. The hearing, deciding whether the case will reach the courts or be directed through arbitration processes, will be held on March 25. As if the company's $120 million debt weren't enough for Charney to handle, the additional threat of another $260 million makes the future of this company look even bleaker.
—Stacy Douek