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American Apparel CEO Faces Worst Sex Suit Yet

NEW YORK ( TheStreet) -- It didn't seem possible for American Apparel's (APP - Get Report) eclectic CEO to draw any more negative attention on himself or the company, but he now faces his most scandalous lawsuit yet.

Dov Charney is being sued for $290 million for allegedly forcing himself on a teen employee, according to news reports.

In a lawsuit filed in Brooklyn Supreme Court, the victim claims in April 2009 Charney invited her to his Manhattan apartment, opened the door wearing nothing but underpants and forced her to perform sexual acts.

The filing goes on to say the victim was held "prisoner" in Charney's apartment for several hours.

The former employee claims Charney's advances began when she was 17 and it didn't turn physical until she was 18.

In the past Charney has avoided several lawsuits claiming sexual harassment, but none have ever been proven.

Aside from drama with its CEO, American Apparel has been facing severe operating issues as well. Under the scrutinizing eye of Wall Street, the company hired a new chief financial officer in February as it faces a prolonged sales decline.

The company's problems have ranged from a possible covenant breach to immigration probes and charges from its accountant that it withheld vital information.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

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