A Brooklyn judge has put a halt to an ex-American Apparel employee's $250 million suit against founder Dov Charney and has ordered a hearing on whether or not the suit should move forward, according to the New York Post.
The lawsuit, which was filed Tuesday, alleged that Charney held her captive in his Manhattan apartment over a period of several hours and forced her into sex acts.
Charney's lawyer claimed the suit was allegedly brought by the ex-employee, Irene Morales, "after making a number of extortion-like threats to expose the company to a threatened avalanche of litigation and negative publicity."
Dov Charney has in the past been accused of sexual harassment, firing workers on the basis of their appearances and using Woody Allen's image without permission for an American Apparel campaign. Aside from his personal troubles, the brand he founded has also endured some rather dire financial straits in the past year.
American Apparel CEO Sued Over Sex Allegations
The lawsuit, however, goes far beyond all that: it alleges Charney held Morales captive in his Manhattan apartment over a period of several hours and forced her into sex acts.
It's unclear whether or not Charney's accuser went to the police at the time of the incident.
American Apparel said in a statement on Tuesday that the company believed the suit was an attempt to extort money.