American Apparel Asks Chancery To Nix Charney Atty Fee Bid

By Matt Chiappardi (July 8, 2015, 9:38 PM EDT) -- American Apparel Inc. told the Delaware Chancery Court on Wednesday that it has no obligation to indemnify ex-CEO Dov Charney in the lawsuit it brought against him for allegedly violating a standstill agreement, and urged the court to toss the former chief's bid to have his legal fees covered.

In a hearing in Wilmington, American Apparel attorney Edward B. Micheletti of Skadden Arps Slate Meagher & Flom LLP argued not only that Charney is misreading the agreements he says obligate his former company to advance his legal fees, but the dispute over the standstill agreement, and its alleged violations, is directed...

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