Dov Charney Hit with $260 Million Sex Lawsuit

kate winslet
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Dov Charney is being sued for $260 million.

In a year plagued with financial woes, immigration issues, and the threat of being delisted by the New York Stock Exchange, American Apparel's controversial CEO and founder Dov Charney may have met his biggest headache yet: a $260 million suit filed by a former store employee who claims she was forced to have sex with him, the New York Daily News reports.

Court papers filed by 20-year-old Irene Morales, a former store manager for the retailer, allege that in 2008 Charney invited her to his home and made her perform oral sex.

"She was then, to all intents and purposes, held prisoner in the apartment for several hours and forced to perform additional sexual acts," the suit says.

Morales, who has named American Apparel and its board of directors in the suit, also alleges that she was forced to have sex with Charney for eight months until she resigned.

American Apparel's lawyer Peter Schey denies the allegations, saying that Morales "resigned with a letter of gratitude regarding her positive experience at the company" and signed a document agreeing not to sue but to settle any claims via a binding arbitrator.

Though Charney was been accused of sexual harassment in the past, none of the cases have been proven in court. Still, Morales insists that Charney abused his position.

"[I] believed I would work in a professional environment where promotions and work advancement would be based on merit and hard work," Morales says. "I was extremely devastated to find out that was not the case."

Get the full story from the New York Daily News.