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: Legal Pad | LA

Former American Apparel employee alleges refusal to play Bloom to Charney's Bialystock led to firing

By Richard Binder

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American Apparel is bending under the weight of yet another lawsuit, this time brought by a former accountant alleging wrongful termination in 2006 for refusing to pad the company's balance sheet. Roberto Hernandez claims he was urged to do so by Chief Executive Dov Charney in an effort to lure investors. Charges in the suit, filed last week in Los Angeles County Superior Court, also include breach of contract and emotional distress. The company calls the accusations "frivolous and baseless" and "a cynical attempt to extract phony leverage by Mr. Hernandez's counsel, Keith Fink, who has been engaged with the company in other litigation for over three years." Earlier this year Fink represented Mary Nelson, a former American Apparel sales manager who sued the company for sexual harassment, which led to a California appeals court publicly rebuking Charney for releasing a "materially misleading" press release claiming victory in the case and concealing the terms of a settlement deal. See also these stories for details.

Full post as published by Legal Pad | LA on November 13, 2008 (boomark / email).