Judge Rules American Apparel Doesn't Have To Pay Former CEO's Legal Bills

By Tonya GarciaMarketWatch Pulse

A Delaware judge has ruled that American Apparel Inc. does not have to pay for legal expenses incurred by the company's former chief executive, Dov Charney, as he defended himself against a charge of breaching a standstill agreement. American Apparel said after he was ousted as CEO of the company, Charney made negative comments about the company in the media and at employee meetings. The judge found that Charney, as a former rather than current officer with the company, isn't entitled to legal fees. American Apparel is struggling to remain afloat, saying last month that it needed an influx of cash to avoid defaulting on a loan. Charney was fired in December after allegations of misconduct and breaking company policy.

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