American Apparel Can't Shed Securities Fraud Claims
Law360, Los Angeles (June 3, 2013, 4:18 PM EDT) -- A California federal judge Monday tentatively refused to toss a putative class action claiming American Apparel Inc. lied to its investors about its financial performance, saying the plaintiffs adequately pleaded claims that the clothing company made misleading statements about its financial controls.
At a hearing, U.S. District Judge Margaret M. Morrow said the shareholders made plausible allegations that “tend to support the position” that American Apparel withheld negative financial information from accounting firm Deloitte, which rendered its 2009 annual report misleading.
In a lengthy tentative ruling, the judge also indicated she will not toss claims against the company's founder and chief...
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