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Dov Charney sues American Apparel for defamation


New York -- The founder and ousted CEO of American Apparel, Dov Charney, is suing the company and its chairwoman Coleen Brown for a minimum of $20 million in damages, accusing them of defamation and mental and emotional distress.

Many of the allegations revolve around a letter Brown wrote to American Apparel employees in which she claimed that Charney had agreed in writing to never return in any capacity to the company. According to the lawsuit, Charney never signed any agreement.

"Charney did not agree to never seek reemployment with American Apparel," the lawsuit said, "nor is American Apparel otherwise contractually or legally precluded from re-hiring him in any fashion."

The new lawsuit is similar to the $30 million one filed last week by Charney against hedge fund and American Apparel shareholder Standard General.

American Apparel said it would "vigorously dispute" the claims.

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