Investigation Into American Apparel, Inc. By Stull, Stull & Brody
April 1, 2015 | By PRN NewsWire
NEW YORK, April 1, 2015 /PRNewswire/ — Stull, Stull & Brody (www.ssbny.com) is investigating potential claims on behalf of shareholders of American Apparel Inc. (NYSE: APP) (“American Apparel” or the “Company”) concerning the termination of Dov Charney, the Company’s former President and Chief Executive Officer (“Charney”).
On June 18, 2014, the Company’s directors suspended Charney as Company president and CEO for alleged misconduct and violations of company policy. Then, on December 16, 2014, American Apparel’s directors terminated Charney’s employment by the Company.
The current investigation is focused upon whether the Company’s Board of Directors breached its fiduciary duties in terminating Charney’s employment.
The Company’s Form 10-K annual report filed on March 25, 2015, disclosed that “[o]n February 5, 2015, the Company learned that the Securities and Exchange Commission had issued a formal order of investigation with respect to matters arising from the Suitability Committee’s review relating to Mr. Charney. The SEC’s investigation is a non-public, fact-finding inquiry to determine whether any violations of law have occurred. The Company intends to cooperate fully with the SEC in its investigation.”
Bloomberg also reported on March 26, 2015, that Charney is suing the Company and seeking $40 million in damages in connection with his termination.
Shareholders of American Apparel may contact Michael J. Klein, Esq. at Stull, Stull & Brody to discuss their rights in connection with the proposed transaction by calling 1-800-337-4983, extension 147 or by email at APP@ssbny.com.
Stull, Stull & Brody has represented shareholders in merger litigation and other securities class actions for over 40 years and has obtained court approval of substantial settlements on numerous occasions.
Attorney Advertising. Prior Results Do Not Guarantee a Similar Outcome.
CONTACT:Stull, Stull & BrodyMichael J. Klein, Esq.6 East 45(th) StreetNew York, NY 10017Tel. 1-800-337-4983, x.147Fax. 1-212-490-2022www.ssbny.comAPP@ssbny.com
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Stull, Stull & Brody
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