American Apparel (APP) Founder Accused of Forcing Teen Employee Into Sex Acts

American Apparel, Inc.’s (APP) founder Dov Charney just received the most explosive lawsuit yet.

Charney, who has previously avoided lawsuits claiming sexual harassment — in 2005 Charney was sued by an employee for regularly walking around American Apparel offices in his underwear — is being sued for $260 million in damages for forcing a teen employee into sex acts, according to a lawsuit filed in Brooklyn Supreme Court.

Here is the descriptions of the suit ; courtesy of the Daily News:

“She alleges that in April 2009, Charney invited her to his Manhattan apartment, opened the door wearing nothing but underpants and “forced her to go down on her knees just inside the front door and perform fellatio upon him.”

He then threw her on the bed and made her repeat the same sex act, “nearly suffocating her in the process,” the suit says.

“She was then, to all intents and purposes, held prisoner in the apartment for several hours and forced to perform additional sexual acts,” the suit says.”

It’s unclear whether the plaintiff – whose name is being withheld by the Daily News – ever reported the incident to police.

Meanwhile the clothing retailer, which is marketed as the urban brand, angling for a new American mentality, is on the verge of bankruptcy. It has been losing upwards of $40 million per quarter for the past year.

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