In 2011, four former American Apparel workers filed a lawsuit against Charney, but at the time the company came to his defense, claiming that the plaintiffs conspired to ‘shake down’ the fashion tycoon with an estimated net worth of $20million.
In 2012, Mr Charney once again came under fire when Michael Bumblis, a former store manager in Malibu, California, accused the CEO of rubbing dirt in his face and choking him.
Charney also allegedly called the man ‘a wannabe Jew’ and used a derogatory term for homosexuals. Bumblis was later fired from his job.
American Apparel once again backed Charney, insisting that Bumblis’ termination was in line with company policy.
All the claims were either settled or dismissed.