American Apparel's Workforce Lies Killed Stock: Suit

Law360, New York (May 4, 2011, 12:09 PM EDT) -- An investor who lost $72,000 on American Apparel Inc. stock filed a consolidated securities class action Friday accusing the retailer of a campaign of lies about the legal status of its workforce.

The Los Angeles retailer violated securities laws by hiring thousands of undocumented workers and lying about their legal status, according to lead plaintiff Charles Rendelman's suit, which seeks damages on behalf of thousands of investors allegedly lured by CEO Dov Charney into thinking the company was "sweatshop-free" and buying shares when it went public...
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