American Apparel Inc. said it was granted a restraining order against Dov Charney by a Delaware court.
The order restrains the ex-chief executive officer from seeking the removal of any of the company's board members, and making negative statements to the press against American Apparel.
Read the full restraining order here.
Ex-American Apparel chief Dov Charney is now getting sued by the company he founded.
The clothing company is suing the ex-chief executive officer for violating the terms of an agreement he signed last summer with hedge fund Standard General and American Apparel, according to a one-sentence press release distributed at 5:28 p.m. ET on Friday. The lawsuit, which was filed in the Delaware Court of Chancery, wasn't immediately available, and spokespeople for the retailer didn't immediately respond to a request seeking additional information. The court's clerk couldn't be reached.
Charney told BuzzFeed News that he had not seen the lawsuit as of 6:15 p.m. ET.
American Apparel's release comes a week after Charney filed a lawsuit against Standard General, the hedge fund now overseeing American Apparel, for defamation, seeking $30 million in damages. The complaint claimed the investigation that led to Charney's ouster was "a sham, a show-trial without the trial, and ultimately a means of reinforcing Charney's exit from the company and entrenching Standard General's control over the same."
Charney's lawsuit followed a slew of other complaints from former employees who remain loyal to the founder. The legal battles have become costly distractions for a retailer that's also facing declining sales and profitability. American Apparel's stock has tumbled 50% since July.
Standard General referred to the lawsuits as "frivolous" and "meritless" in an e-mailed statement last week.
"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," the hedge fund said.
Sapna Maheshwari is a business reporter for BuzzFeed News and is based in New York. Maheshwari reports on retail and e-commerce.
Contact Sapna Maheshwari at firstname.lastname@example.org.
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