Dov Charney, founder of American Apparel Inc. who was ousted as chief executive last year, has sued Standard General, a New York private equity firm that helped Charney amass shares of the downtown L.A. apparel maker but then failed to support him as he tried to mount a comeback as chief executive.
The lawsuit, filed Thursday in Los Angeles Superior Court, alleges defamation of character and intentional interference with economic relations. He is seeking $30 million in damages.
A spokesman for Standard General dismissed the claims, saying, “Dov Charney and his associates continue to file frivolous, meritless lawsuits at a breakneck pace. The facts speak for themselves, and we are confident that Mr. Charney will be held accountable for this knowing, intentional abuse of the legal system.”
An American Apparel spokeswoman responded also, saying, “These meritless claims serve as public relations opportunities now, but they will each will fail the test when put before a judge. We are confident we will succeed on every one of these in the proper venue.”