American Apparel CEO Faces Worst Sex Suit Yet

NEW YORK ( TheStreet) -- It didn't seem possible for American Apparel's ( APP) 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.

>To submit a news tip, send an email to: tips@thestreet.com.

More from Stocks

Stocks Trade Mixed, Energy Shares Fall on Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Drop in Oil Prices

Top U.S. Regulators May Be Sowing the Seeds of the Next Financial Crisis

Top U.S. Regulators May Be Sowing the Seeds of the Next Financial Crisis

Fiat Chrysler Recalls 4.8 Million Vehicles Over Cruise Control Issue

Fiat Chrysler Recalls 4.8 Million Vehicles Over Cruise Control Issue

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

North Korea, Apple, GPDR and Gap - 5 Things You Must Know