Legal Issues

Retail Giant American Apparel Gets Restraining Order Against Its Founder

Retail Giant American Apparel Gets Restraining Order Against Its Founder
Image credit: dovcharney | flickr

American Apparel Inc said it was granted a restraining order against ousted Chief Executive and founder Dov Charney.

The order temporarily restrains him from breaching terms of a standstill agreement signed last year, including seeking removal of the company's board members and making negative statements in the press against the company or its employees, American Apparel said in a regulatory filing on Tuesday.

The Delaware Court of Chancery granted the restraining order on Monday.

The company sued Charney in May for violating the standstill agreement.

Charney was fired in December, six months after he was suspended for allegedly misusing funds and for allowing the posting on the Internet of nude photos of a former female employee who had accused him of sexual harassment.

(Reporting by Sruthi Ramakrishnan)

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