American Apparel CEO Dov Charney had an early agreement to settle a lawsuit. Dov Charney was accused of sexual harassment of a former woman employee, Mary Nelson. Nelson alleged that Dov Charney made sexual advances and inappropriate comments to her before he fired her from her job.

The American Apparel CEO would settle with $1.3 million if Mary Nelson kept the settlement a secret and participate in an arbitration. This arbitration would have a predetermined outcome that would allow Dov Charney to declare victory over the lawsuit. Mary Nelson refused to go through the arbitration. Dov Charney’s lawyers brought the case to the California appeals court. The appeals court had to decide if the plaintiff, Mary Nelson, broke her agreement by refusing to go through with the arbitration.

American Apparel Dov Charney story link.

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This entry was posted on Sunday, November 9th, 2008 at 5:50 am and is filed under News.