Dov Charney’s Sexual Harassment Suit Moved To Arbitration

It looks like Dov Charney has dodged yet another bullet.

Last year, store employee Irene Morales filed a $260 million lawsuit against her lawsuit-prone boss after she was allegedly harassed at work and held as a “sex slave” on her 18th birthday in 2008.

Yesterday, a New York state judge ruled that the case should be handled in arbitration, and not open court, as initially filed. So what does this mean? Both sides present their cases to a neutral court ordered official, who makes a binding decision that the two parties have to agree to.

American Apparel’s lawyer, Stuart Slotnick, had this to say about Morales’ suit:

“The claims are bogus and frivolous and we expect they will be dealt with accordingly.”


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