Dov Charney, the sequel

by Walter Olson on October 30, 2008

Earlier this year Ted wrote an item titled “Implausible defense department” about American Apparel founder Dov Charney’s efforts to explain away jaw-droppingly colorful facts in the latest of the multiple sexual harassment complaints he has faced. The sequel is worthy of what has gone before: it appears that Charney faked an agreement to send the case to arbitration to conceal a deal in which he agreed to settle the claim for $1.3 million. The deal later fell apart and the case is headed back for (presumably genuine) litigation. (On Point News, Workplace Prof Blog).

P.S. Overlawyered guestblogger Victoria Pynchon, of the IP ADR Blog, has now posted a more extensive and detailed report on the case, & see Nov. 16 update with company’s side of the story.

{ 1 trackback }

American Apparel arbitration, cont’d
11.16.08 at 12:09 am

{ 3 comments }

1 Mark 10.31.08 at 11:45 am

Wow! I was outraged before I saw this latest development with the way Charney treated his employees but now infuriated as a citizen at his conduct and his lawyers outright “contempt” for the legal system and the public’s right to receive accurate information. I recall Charney repeatedly telling us via the press the Nelson’s claims were fabricated and that she was a poor sales performer who disappeared and never came back. I NEVER believed this and it is now obvious that she had him dead on with her claims as he agreed to pay her 1.3 Million dollars!

2 William Nuesslein 11.01.08 at 8:00 am

A settlement should indicate a viable claim. BUT BUT BUT Making it go away, even if the it is completely wrong, can be rational. Depending on juries is a crap shoot, with loaded dice.

Harassment claims are always dubious. It is too easy to get attention and money by cobbling together events that may be true, or confabulation. The hurt of harassment is self reported and might be influenced by the more hurt, the more money.

A 1.3 Million dollar offer exceeds the expected life time earnings of many of us. Such payments for hurt feelings are insults to all who work hard for a living.

3 Jason 11.05.08 at 2:01 pm

Let me get this straight, She BEGGED American Apparel to settle, got the settlement amount that she wanted and then did NOT show up to the fake arbitration?? If she was a gold digger, how come she didn’t show up for it? and if she begged AA to settle, how come she didn’t show up? could it be that American Apparel is a bunch of liars and she really has a point to prove and did not agree to a sham arbitration where they would make her look SHE is the bad guy.

Comments on this entry are closed.