Dov Charney Sued By Former Employee For $250M Over Alleged Forced Sex

Update: The New York Post reports that a Brooklyn judge has temporarily halted the lawsuit. The paper writes: Stuart Slotnick, Charney's lawyer, said in court papers that Irene Morales was bound by an agreement that all disputes would go to arbitration....Slotnick said Morales 'brought this action after making a number of extortion-like threats to expose the company to a threatened avalanche of litigation and negative publicity.'"

Previously: American Apparel founder and CEO Dov Charney is being sued by a former employee for "enduring eight anguished months of forced sex," the New York Daily News reports.

Irene Morales, 20, filed the suit on Friday for $250 million in Brooklyn Supreme court. She started working at the Chelsea store when she was 17 and Charney began harassing her from the get-go, the lawsuit claims, asking for explicit pictures among other things and continuously telling her that she would have to have sex with him once she turned 18. The New York Post adds, "the pressure of Charney's demands caused Morales to become 'increasingly nervous and depressed,' forcing a hospital stay after an 'emotional breakdown.'"

Then, on her birthday in April 2008, the Daily News writes:

Charney invited her to his Manhattan pad, opened the door wearing only his briefs and "forced her to go down on her knees just inside the front door and perform fellatio upon him."

He then threw her on the bed and made her repeat the same sex act, "nearly suffocating her in the process," the suit says.

"She was then, to all intents and purposes, held prisoner in the apartment for several hours and forced to perform additional sexual acts," the suit says.

Morales ultimately quit her job. She said she didn't go to the police sooner because she was ashamed, but is now considering pressing criminal charges.

This isn't the first time a former employee has floated such charges against Charney -- the man who loves a good clothing ad in which models wear little clothes -- but none have ever made it to a courtroom.

American Apparel issued the following statement (via Racked):

We have been informed today that [Morales], a former employee of American Apparel who left the company without complaint and resigned with a letter of gratitude regarding her positive experience at the company, has filed a sexual harassment lawsuit in New York against the company.

Upon her resignation, [Morales] acknowledged in writing that she had no pending claims against the company and signed a severance agreement which included a full release of claims and an agreement to submit any future claims to confidential binding arbitration. All American Apparel's employees are subject to the same confidential arbitration agreement signed by [Morales] in order to protect the privacy interests of employees and former employees, and to prevent predatory plaintiffs and their attorneys from attempting to use the media to extort the company. Such an arbitration process was initiated by the company against [Morales] several weeks ago.

The company intends to file a formal complaint with the NY state bar seeking disciplinary action against [Morales'] lawyers who we believe are engaged in an illegal conspiracy to extort money from American Apparel. We are very confident that [Morales'] claims will be promptly referred by the court to confidential binding arbitration where her claims and the company's counter-claims will be resolved, we believe fully in favor of the company.

Comments

[igmuhota]

12:48 PM on 03/13/2011

From the company that brought us the "In Bed With The Boss" ads? Who would have thought? Ugh.

[JoeDoorman]

05:58 PM on 03/12/2011

OMG... This guy looks like the Caveman from the Geico commercials.
Case closed.

[VelveteenLady]

06:35 PM on 04/30/2011

Love your post. The only way that Charney could possibly get any sexual action would be by force. Too bad he can't leave it in his own hands.

[TheMuckraker]

02:29 PM on 03/12/2011

Escapee from the Brady Bunch?

[globalguy]

03:47 PM on 03/11/2011

Hmmm...went to his apartment despite being creeped out for years byhis advances...didn't call police after the alleged rape...guy sounds like a creep for a long time but with that said I'd support her position but only if she commits to donating any $ to a charity.

[SteveDenver]

06:16 AM on 03/11/2011

Charney has a reputation for engaging employees for sex, producing provocative ads (many of which are turned down by publications), and sex sex with sex and sex. He's creepy and yet somehow successful.

$260 million? I never blame victims, but was she a victim?

[RodneyMesriani]

02:52 AM on 03/11/2011

Contrary to what most people believe, an employee especially one who is as young as the complainant, can still be considered sexually harassed, even if she did give in to the offender's demands for sex. As ruled by the Supreme Court, even if there was indeed consent to have sex or carnal contact, what matters is whether the employer or boss’s conduct or request for such is unwelcome especially if the victim gave in because of fear of losing her job.

[schatsie]

08:24 PM on 03/20/2011

The position of power..

[blukazoo]

06:21 PM on 03/10/2011

If she was extremely nervous and didn't want to have sex with him, why did she go to his house? Something sounds off about this story...

[valluhree]

05:50 PM on 03/10/2011

Mmm, I'll wait for a verdict or more evidence. What I do know is that I severely dislike those skeezy American Apparel ads. =P

[sean62965]

03:53 PM on 03/10/2011

Someone should tell this clown Greg Brady called, he wants his clothes back.

[nomoredead]

02:46 PM on 03/10/2011

Rule #1.....sue someone with money.

I think this guys near bankruptcy.

[Noriko Miyazaki]

11:54 AM on 03/10/2011

First of all, she said: She started working at the Chelsea store when she was 17 and Charney began asking for explicit pictures among other things and continuously telling her that she would have to have sex with him once she turned 18.

Having said this up front and very clearly: Then, on her 18th birthday in April 2008, he invited her to his pad. And she very happily came to his pad. Where he had sex with her; Just as he had told her that he would. It quite clearly seems to me, that she was extremely eager to have sex with him or has never learned the word NO!

And after that, she "endured eight anguished months of forced sex." Never during those 8 months refusing any of the sex or quitting her job.

And when she finally did decide to leave the company, she did so without complaint and resigned with a letter of gratitude regarding her positive experience at the company.

Sounds to me, that she wanted his birthday experience and everything that occured after that.

And now she wants $250 to $260 million dollars. She does not deserve bus fare!!!

[Samirah1368]

03:49 PM on 03/10/2011

there is a possibility that she was so scared of him and losing her job that she performed these things and NEVER told a soul...there is that possibility because not everyone knows how to stand up for themselves etc...so if this is all true and she truly is this weak then she deserves all that and more because he did indeed rape her-physically and mentally....

HOWEVER with all that out the way I have to agree with Noriko...this does not ring true to me at all!

[ascension]

06:02 PM on 03/11/2011

Given that we do not have all of the facts, you are being a lot more harsh to the former employee than you are to the boss.

Waiving the right to sue the company, its present and former employees and officers, is standard in most severance agreements. Maybe she had to sign the letter of gratitude to receive the severance agreement.

We don't know how closely she read the document. Would we expect a reasonable 18 year old to know what arbitration even is?

[lillyM r]

11:28 AM on 03/10/2011

I worked at American Apparel for some time. It was okay for a while, until it just wasn't. I did not get paid overtime until I sent a letter into HQ, there were harassing phone calls asking about my choice of underwear, and was scolded for leaving early after falling off a ladder (the hinges were faulty and folded in) and slicing my arm open, requiring 10 stitches. I resigned, as I was moving. Five days before my last day, two members from Corporate came in, introduced themselves to me as people from Corporate offices, and proceeded to take clothing off the shelves while I worked, and stick them in their bags. I saw them doing this. I did not say anything because, well, they told me exactly who they were. Why would I get myself in trouble by confronting their actions? I needed a job when I moved. 10 minutes later, while training an employee and covering for my manager, I got fired. For not stopping them from pretending to steal from the store. Not kidding.

Downside: I worked extremely hard, full-time on a part-time salary, and got fired by chicks who didn't even graduate from college. Upside: I paid my first months rent and had left over cash after selling all the free clothing they gave me as an employee. My first 2 months in NYC were just dandy, thanks to their overpriced cotton tees and pleather leggings.

[PaddockGirl]

12:06 PM on 03/10/2011

That sounds like a nightmare!

[Kina3]

10:32 AM on 03/10/2011

It always look funny to go for a lawsuit over a criminal suit first. MAYBE if she went to the cops first and then consider filing a lawsuit it might be more plausible. However, for her to sue for $260M and then 'consider' pressing criminal charges seems a bit fishy. She said she didn't go to the police sooner because she was 'ashamed'. Yet, she's suing...

[Myrna Minkoff]

08:56 AM on 03/10/2011

What a sleeze! I can't believe people are sticking up for him.

[Noriko Miyazaki]

12:20 PM on 03/10/2011

He told her what he wanted once she was 18. And she hurried right over to his place right after turning 18 to obige him. She even says that she flew all the way to LA and went to his home months later. And she continued doing this for 8 months. She says, all to keep a $9 an hour job, with no paid overtime. Her claims are nonsence. She deserves no more than bus fare. She enjoyed herself. Her shyster lawyer claimed that she needed intense psychiatric care. What psychiatrist would not, if this was true, demand that she quit immediately?

[havbrush]

01:35 PM on 03/10/2011

You're on to something. If she went to his apartment after turning 18 when he invited her, she had to expect what was going to happen since he had been telling her that she would have to have sex with him when she turned 18. Why go to the apartment? She should have went to HR.

[Myrna Minkoff]

09:51 AM on 03/12/2011

He's still a sleeze.

[Kittenesque]

04:08 AM on 03/10/2011

If ever the ads told a story...