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American Apparel shares fall after latest lawsuit by 3 former employees

April 28, 2011 |  2:58 pm

Shares of American Apparel Inc. fell slightly after reports late Wednesday that three women who filed sexual harassment lawsuits against the company and its chief executive had filed a new complaint that they had been defamed.

Shares of American Apparel dropped 4 cents, or 2.5%, to close at $1.55 Thursday.

In the latest lawsuit, Irene Morales, Alyssa Ferguson and Tesa Lubans-Dehaven accused the Los Angeles company and CEO Dov Charney of intentional infliction of emotional distress, invasion of privacy and impersonating them online.

Charney could not be reached for comment Wednesday and Thursday. But Peter Schey, a lawyer for American Apparel, said Thursday that the company had “recently received” the suit and was reviewing it carefully. Schey and other company executives have described the sexual harassment lawsuits as baseless extortion attempts by the women.

“Given the source of the complaint...we would not be surprised if the allegations are entirely without merit,” Schey said.

-- Andrea Chang

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