Dov Charney accuses American Apparel of defamation

American Apparel founder and former CEO Dov Charney is suing the Los Angeles clothing retailer and Chairman Colleen Brown for defamation after his ouster last year.

“The company believes that such claims are without merit and intends to vigorously dispute the validity of these claims,” the company said in a regulatory filing on Wednesday.

The lawsuit, filed Tuesday in California state court, seeks a minimum of $20 million in damages.

American Apparel’s board fired Charney in December after it said an internal investigation found he violated the company’s sexual harassment and anti-discrimination policies and misused corporate funds.

Charney claims the board forced him out over trumped-up allegations, and he is fighting to return to the company.

He filed a similar suit last week against the company’s controlling shareholder, New York hedge fund Standard General, claiming it defamed him when it said he was terminated “for cause” based on an “independent” investigation.

The hedge fund called the suit “frivolous.”