Ex-American Apparel CEO Dov Charney Loses Fee Claim

By Peter Hall (September 11, 2015, 9:44 PM EDT) -- A Delaware Chancery judge on Friday nixed American Apparel founder and former CEO Dov Charney's bid to have the clothing retailer pay for his defense against its claims he waged a "scorched earth campaign" to take the company back after his ouster, violating an agreement to remain silent.

In an opinion that parses the language of American Apparel's indemnification agreement, Chancellor Andre G. Bouchard found Charney is not entitled to a fee advancement because he failed to show a nexus between the alleged violations and his duties as a corporate officer.

Chancellor Bouchard wrote the indemnification agreement requires the company to...

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