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Statement from attorney for American Apparel

An attorney for American Apparel issued a statement regarding the sexual harassment suit filed against the company by former employee Irene Morales.
/ Source: TODAY

Below is a statement from American Apparel attorney Peter Schey:

“We have been informed today that Irene Morales, a former employee of American Apparel who left the company without complaint and resigned with a letter of gratitude regarding her positive experience at the company, has filed a sexual harassment lawsuit in New York against American Apparel. Upon her resignation, Ms. Morales acknowledged in writing that she had no pending claims against the company and signed a severance agreement which included a full release of claims and an agreement to submit any future claims to confidential binding arbitration. All American Apparel's employees are subject to the same confidential arbitration agreement signed by Ms. Morales in order to protect the privacy interests of employees and former employees, and to prevent predatory plaintiffs and their attorneys from attempting to use the media to extort the company. Such an arbitration process was initiated by the company against Ms. Morales several weeks ago. The company intends to file a formal complaint with the NY state bar seeking disciplinary action against Ms. Morales' lawyers who we believe are engaged in an abuse of the legal system in order to extort money from American Apparel. CEO Dov Charney's celebrity status in the fashion industry is being publicly exploited by Ms. Morales' attorneys despite their clients' agreement to engage in confidential arbitration over any disputes between the parties. We are confident that Ms. Morales' claims will be promptly referred by the court to binding arbitration where her claims and the company's counter-claims will be resolved, we believe fully in favor of the company.”