American Apparel Under Regulator Scrutiny for Possible Violations The investigation is looking into a potential legal violation related to Dov Charney, the company's founder and former chief executive officer.
By Reuters
This story originally appeared on Reuters
American Apparel Inc said in a filing on Wednesday that the U.S. Securities and Exchange Commission has ordered an investigation into a potential legal violation related to Dov Charney, the company's former chief executive officer.
The filing said the "investigation is a non-public, fact-finding inquiry" into "matters arising from the (company board)Suitability Committee's review relating to Mr. Charney," in reference to the process that formalized Charney's firing in Dec. 2014.
The fashion retailer said it intends to cooperate fully with the regulator in its investigation.
(Reporting By Jeffrey Dastin in New York; Editing by Alan Crosby)
