American Apparel under scrutiny by U.S. regulator for possible violations

Published 03/25/2015, 06:11 PM
Updated 03/25/2015, 06:21 PM
© Reuters. The American Apparel factory headquarters is pictured in Los Angeles, California

(Reuters) - American Apparel Inc said in a filing on Wednesday that the U.S. Securities and Exchange Commission has ordered an investigation into a potential legal violation related to Dov Charney, the company's former chief executive officer.

The filing said the "investigation is a non-public, fact-finding inquiry" into "matters arising from the (company board)Suitability Committee's review relating to Mr. Charney," in reference to the process that formalized Charney's firing in Dec. 2014.

© Reuters. The American Apparel factory headquarters is pictured in Los Angeles, California

The fashion retailer said it intends to cooperate fully with the regulator in its investigation.

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