American Apparel Inc.'s (APP) founder Dov Charney, who was ousted as its Chief Executive Officer last year, is seeking $40 million in damages owing to the termination, Bloomberg reported.
It was in December 2014 that the Los Angeles, California-based retailer terminated Dov Charney, and appointed veteran fashion executive Paula Schneider as Chief Executive Officer, effective January 5.
Charney was suspended as president and CEO by the American Apparel Board on June 18, 2014, for alleged misconduct and violations of company policy.
He had been under the scanner over allegations of misusing company funds. An ex-employee sued Charney for posting nude photos of her in a blog, and several female employees have accused him of sexual harassment.
According to the report, Charney's claims include nearly $6 million in severance, $1.3 million in vacation-time pay, a minimum of $10 million for emotional distress and 13 million shares of the retailer.
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