American Apparel To Pay $4.8M To Exit Investor Suit

Law360, New York (January 21, 2014, 5:14 PM EST) -- American Apparel Inc. on Friday agreed to pay $4.8 million to settle a class action in California federal court accusing the clothing retailer of lying to investors about the legal status of its immigrant employees, leading the company's stock to suffer following the workers' termination. 

Lead plaintiff Charles Rendelman filed the motion for preliminary approval of the settlement after bringing suit against the retailer in 2011 for violating securities laws by hiring thousands of workers living in the U.S. without legal permission and lying about their...
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