American Apparel Hit With New Investor Class Action

Law360, New York (September 10, 2010, 6:38 PM EDT) -- Seizing on mounting concerns about American Apparel Inc.'s solvency, investors have launched a new securities class action suit over the company's disclosures.

The suit, filed Wednesday in the U.S. District Court for the Central District of California, alleges the company's recent missteps have negligently damaged shareholder investments, citing its shaky finances, noncompliance with immigration laws and failure to inform shareholders of the potential fallout from a U.S. Immigration and Customs Enforcement investigation.

The battered company is facing an array of challenges, from mounting debt and the...
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