NEW YORK, April 1, 2015 /PRNewswire/ -- Stull, Stull
& Brody (www.ssbny.com) is investigating potential claims on
behalf of shareholders of American Apparel Inc. (NYSE MKT:
APP) ("American Apparel" or the "Company") concerning the
termination of Dov Charney, the
Company's former President and Chief Executive Officer
("Charney").
On June 18, 2014, the Company's
directors suspended Charney as Company president and CEO for
alleged misconduct and violations of company policy. Then, on
December 16, 2014, American Apparel's
directors terminated Charney's employment by the Company.
The current investigation is focused upon whether the Company's
Board of Directors breached its fiduciary duties in terminating
Charney's employment.
The Company's Form 10-K annual report filed on March 25, 2015, disclosed that "[o]n February 5, 2015, the Company learned that the
Securities and Exchange Commission had issued a formal order of
investigation with respect to matters arising from the Suitability
Committee's review relating to Mr. Charney. The SEC's investigation
is a non-public, fact-finding inquiry to determine whether any
violations of law have occurred. The Company intends to cooperate
fully with the SEC in its investigation."
Bloomberg also reported on March 26,
2015, that Charney is suing the Company and seeking
$40 million in damages in connection
with his termination.
Shareholders of American Apparel may contact Michael J. Klein, Esq. at Stull, Stull &
Brody to discuss their rights in connection with the proposed
transaction by calling 1-800-337-4983, extension 147 or by email at
APP@ssbny.com.
Stull, Stull & Brody has represented shareholders in merger
litigation and other securities class actions for over 40 years and
has obtained court approval of substantial settlements on numerous
occasions.
Attorney Advertising. Prior Results Do Not Guarantee a
Similar Outcome.
CONTACT:
Stull, Stull & Brody
Michael J. Klein, Esq.
6 East 45th Street
New York, NY 10017
Tel. 1-800-337-4983, x.147
Fax. 1-212-490-2022
www.ssbny.com
APP@ssbny.com
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SOURCE Stull, Stull & Brody