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"There will be other lawsuits we will be filing
against the company which they are aware of but have not
revealed to the media," attorney Keith Fink said in an email
reply to Reuters.
The company's board ousted Charney in December, six months after
suspending him, for allegedly misusing funds and helping spread
improper photos of a former employee.
The claims for damages, first reported by Bloomberg, include
about $6 million in severance, $1.3 million in vacation-time
pay, about $10 million for emotional distress and 13 million
shares of the company.
American Apparel could not be reached for comment outside
regular business hours.
The U.S. Securities and Exchange Commission has ordered an
investigation into matters arising from the review by the board
committee of American Apparel that formalized Charney's firing
in December, the fashion retailer said in a filing on Wednesday.
American Apparel learned of the formal order of investigation on
Feb. 5, but it was not immediately clear whether the probe
related to Charney's conduct or to the board's review of him,
according to the filing.
Charney, 45, started American Apparel's predecessor companies in
1989 and had been at the helm since 2007, when the company went
public.
American Apparel, which reported a $28 million loss for the
fourth quarter on Wednesday, said it incurred about $3.8 million
in legal and consulting fees in the quarter related to its
investigation into Charney.
(Reporting by Anjali Rao Koppala and Rishika Sadam in Bengaluru;
Editing by Andrew Hay and Gopakumar Warrier)
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