The real reason American Apparel CEO Dov Charney was fired by the board of directors specifically, is for forcing a former employee into sex slavery. Read more on the story below!
CEO Dov Charney, has been under fire for many things regarding his company American Apparel. The real reason why the CEO was fired is because of a case in 2011 when a former employee of his, named Irene Morales, accused him of forcing her into sex slavery. He even made his employees post nude photos of Morales onto a blog without her knowing.
A source stated, “The board’s concern…is that the blog not only harassed and defamed Morales, but also ran afoul of certain California laws that forbid falsely impersonating others online, as alleged in a suit at the time by Morales’s lawyer Eric Baum.”
The board was mortified by Charney’s actions not because of any moral matters, but because the move “exposed the company to liability”. According to her lawsuit, Morales wanted $260 million, but that case was thrown out in 2012 because Morales sent many nude photos to Charney after she left the company. But the case did go into arbitration which means she will receive a settlement “in the low six-digits.” With the video of Charney dancing unclothed in front of his employees and the case with Morales, the board had no choice but to take action.