Last month, American Apparel announced its fourth-quarter profit (the highest since 2010), but more interestingly, the company's annual report shed light on its legal landscape. Its hardly a secret that American Apparel CEO Dov Charney has faced quite a few lawsuits in the past several years, the vast majority of which were sexual harassment claims. According to the company's report, only one case (a class action on behalf of all female employees filed in 2006 by Sylvia Hsu) is outstanding. There are three harassment cases in arbitration: one was settled "with no monetary liability to the Company;" in another, American Apparel "prevailed on the sexual harassment claims."
Other cases that American Apparel is currently involved in: a proposed class action lawsuit claiming that AA misrepresented its compliance with federal employment laws to investors (put simply: the company knowingly employed undocumented workers and lied about it); and a class action lawsuit filed recently in Los Angeles Superior Court, which alleges that the company has filed to adequately compensate workers for overtime labor.