The embattled ride-hailing company has faced numerous public relations disasters.
Earlier this week, the Los Angeles-based company received a $300 million bid from a group of investors who are backing the return of Dov Charney.
The company has been trying to rebound since the ousting of its founder and former CEO Dov Charney.
The embattled retailer warned investors could face 'substantial or total losses' of their investments.
The company wants nothing to do with Dov Charney anymore.
Charney is seeking millions of dollars for a breach of employment contract, his attorney said.
The investigation is looking into a potential legal violation related to Dov Charney, the company's founder and former chief executive officer.
With supposedly only $100,000 in his bank account, majority shareholder Charney told a reporter he is going after all those who did him wrong.
Six months after suspending him for alleged sexual misconduct, American Apparel pulls the trigger and cuts ties with its controversial founder.