Alternative Dispute Resolution
Court Reveals Sham Arbitration Pact to Clear American Apparel CEO
Posted Nov 6, 2008, 10:03 am CST
By Debra Cassens Weiss
A California appeals court opinion has revealed an unusual agreement for a sham arbitration proceeding that would clear the CEO of American Apparel of sexual harassment allegations.
The agreement called for a secret payment of $1.3 million to former sales manager Mary Nelson in exchange for her agreement to an arbitration in which a retired judge would rule for the company, Portfolio.com reported last week.
Nelson had accused American Apparel CEO Dov Charney of wearing a skimpy thong at the office and calling employees sluts in a job interview, Portfolio says. She agreed as part of the settlement that a press release would be issued saying that an arbitrator had found Charney never made any sexual advances, the… Continue reading...
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