An explosive lawsuit accuses Dov Charney, 42, of carrying out a campaign of sexual harassment against Irene Morales after she joined the company as a 17-year-old sales associate.
He allegedly demanded that she send him ‘sexually explicit’ photographs, text messages and emails and she became so ‘nervous and depressed’ at her boss’s advances that she claims she suffered an emotional breakdown.
'Traumatised': Irene Morales, now 20 years old, poses at her attorney Eric Baum's office. She is suing American Apparel owner Dov Charney for $250million over claims he used her as a sex slave
Accused: American Apparel CEO Dov Charney is accused of sexually harassing and sodomizing the teenager while she was an employee
She was ‘emotionally traumatized’ by her ordeal, her lawyer Eric Baum told MailOnline.
‘Her life has drastically changed as a result of the sexual harassment. She is under the care of a doctor and is still suffering from the trauma,’ he added.
According to court papers filed in Brooklyn, New York, Miss Morales was hired by American Apparel in August 2007.
Soon after she started work she was bombarded with calls from Mr Charney demanding details about her sexual history, even though she was still in high school.
The lawsuit said he made it ‘clear her employment would be forfeited if she did not comply.’
Accused: Charney admits that he runs the offices with a sexually charged atmosphere and he has had several sexual harassment suits against him
‘He informed her that if she wanted to remain employed and be advanced by the company she would have to engage in sexual acts with him as soon as she turned 18 years old,’ the suit adds.
Although Miss Morales was hospitalized for several days after becoming ‘shocked and horrified’ by her boss’s demands, she said he only increased the pressure on her ‘for sexual acts aimed at his personal gratification’ when she returned to work.
Miss Morales, of Bedford-Stuyvesant, said she started as a salesperson and was quickly promoted to be manager of the company’s store in Chelsea, New York.
On the attack: Court papers filed by Mr Baum on Miss Morales' behalf against American Apparel and Dov Charney
Just after her 18th birthday in April 2009, Miss Morales said she was invited to Mr Charney’s downtown Manhattan apartment.
According to the court documents, Mr Charney appeared at the door wearing only his underpants and immediately dragged her inside.
She claims he forced her to go on her knees and perform a sex act just inside the front door, ‘then he dragged her into his bedroom, threw her on to the bed, got on top of her and forced her to perform’ another sex act – ‘nearly suffocating her in the process.’
‘She was, to all intents and purposes, held prisoner in his apartment for several hours and forced to perform additional sex acts upon defendant Charney.’ These allegedly included an attempt to sodomise the teenager.
The lawsuit claims the abuse continued for the next eight months. Mr Charney allegedly gave Miss Morales a ‘large dildo sex toy’ and was ‘induced’ to visit her employer’s Los Angeles home in the summer of last year where ‘she was subjected to extreme psychological abuse and torment,’ said the documents.
Mr Baum, of the New York firm Simon, Eisenberg and Baum, said: ’She started there when she was 17 and she was hoping to advance with opportunities in the fashion industry. But she has not found comparable employment since that date.’
Mr Baum said she did not deliberately go to authorities because of trauma and shame, but she may press criminal charges in the future.
He told MailOnline: ’It is not uncommon for women who are the victims of sexual harassment, sexual assaults and rape to wait many years before they come forward.
'They are often scared of what people in society will think of them. They are embarrassed about what has occurred. It is only recently that Miss Morales decided to come forward,’ he added.
Miss Morales has put her signature on the court papers, swearing that what she claims happened is true
'I was extremely devastated to find out that was not the case.'
The suit also accuses the company’s eight other board members of failing to protect Miss Morales from an executive they should have known was a ‘sexual predator.’
Peter Schey, an American Apparel lawyer, said that Morales 'resigned with a letter of gratitude regarding her positive experience at the company'.
He added that she signed an agreement not to sue but to settle any claims through a binding arbitrator.
The case, Mr Schey said, 'will be resolved, we believe, fully in favour of the company.'
In a statement, American Apparel called the allegations ‘entirely baseless.’
‘CEO Dov Charney’s celebrity status in the fashion industry is being publicly exploited,’ it added.
The retailer has come under fire for its racy advertising campaigns featuring young girls in various stages of undress.
Mr Charney has been accused of sexual harassment in the past but it has never been proven in court, though he has admitted to having a sexually-charged atmosphere in the offices.
Canada-born Charney has been known to carry out board meetings in his underwear and was said to frequently refer to the women in the office as 'sluts' and 'whores'.
By way of defence he said: 'Some people love sluts.'
However, he has been praised for some of his other employment practices, namely that he insists on every American Apparel garment being manufactured in his Los Angeles factory.
There the staff are paid twice the minimum wage and enjoy untold benefits, including full family medical insurance and shares in the company.
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