As you may have heard, American Apparel was so desperate to get rid of its CEO-- and the constant barrage of sexual harassment he came with-- last year that it spent more than half its cash and then some to push him out of the company. Now, as the newly installed management struggles to class up the joint, Charney is demanding forty mill for his time and suffering, among other things.
Los Angeles lawyer Keith Fink — who, in a twist, had formerly represented American Apparel employees suing Charney for harassment — said in a letter last week that the retailer is liable for $20 million to $25 million in damages for Charney’s loss of employment. That includes Charney’s claim to 13 million American Apparel shares, nearly $6 million in severance and $1.3 million in unpaid vacation for the ex-CEO, who was a notorious workaholic, Fink said. “I still have not received Mr. Charney’s priceless art,” Fink added, referring to art and furniture left behind at the company’s offices following the abrupt dismissal last June. “While someone may be able to pencil the value of the art Mr. Charney accumulated over the years in the tens of millions of dollars, the sentimental value is priceless to him.” Among other claims Fink outlined in the March 19 letter, which was first reported by Bloomberg News, is that Charney is entitled to an additional $10 million or more in damages for “emotional distress.”