American Apparel Sues Dov Charney, Alleges ‘Scorched Earth Campaign’

After facing a volley of lawsuits from Dov Charney and his allies, American Apparel is firing back by accusing its ousted chief executive of running a "scorched earth campaign" as he tries to regain control of the company. The Los Angeles clothing maker said Charney is violating the terms of a deal that he agreed to in July shortly after the board suspended him as CEO and removed him as chairman, citing evidence of inappropriate behavior with employees and misuse of company funds, according to a lawsuit filed Monday in Delaware Chancery Court.