Ousted American Apparel CEO Seeks $23 Million in Severance

The terminated American Apparel founder Dov Charney is fighting back with legal action.
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The terminated American Apparel founder Dov Charney is fighting back with legal action. Not only is he disputing the accusations in his termination letter, but he wants his job back. And if the Board doesn't reinstate him as the CEO, he vows to seek between $23 million to $25 million in severance. Charney was fired on Wednesday evening by his own handpicked Board. According to his termination letter, the three main reasons were: breach of fiduciary duty, violation of company policy and misuse of corporate assets. The board alleges Charney paid significant hush money to employees who could have accused him of inappropriate activities and that he failed to follow rules against discrimination, harassment and assault. He denies all of the allegations. Accusations like these are not new to Charney. In 2010, it was widely reported that American Apparel hired its employees based on appearance only. In 2011, Charney also caught heat for saying during a Buzzfeed interview, "You can't call a woman a b****, you can't call her this, you can't call her that. But that's what life's really like." Personal behavior aside, Charney has also been blamed for the falling share price. If his dismissal remains in place, he will have to part ways with American Apparel within the next few weeks .