Irene Morales

A Brooklyn, N.Y. judge has tossed out a $260 million lawsuit alleging that American Apparel CEO Dov Charney kept a young employee as a "sex slave," saying 21-year-old Irene Morales had already agreed to arbitration. Supreme Court Judge Bernadette Bayne delivered her Feb. 10 ruling to attorneys Wednesday, according to DNAInfo.com. Bayne didn't address the merits of the claim that the 43-year-old Charney conscripted Morales, a former manager at a local American Apparel branch, into serving as his sex slave for eight months once she turned 18.

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