As noted by Women's Wear Daily, the New York Postand the New York Daily News, the sexual harassment case against American Apparel chief executive officer Dov Charney has been dismissed from open court and will be settled in arbitration.

"The court granted our motion in its entirety and we expect the case to be dismissed in arbitration," explained Stuart P. Slotnick, the Buchanan Ingersoll & Rooney litigation shareholder representing Charney. "The claims are bogus and frivolous and we expect they will be dealt with accordingly."

More on American Apparel: Slotnick Wins Temporary Stay on Suit Against American Apparel CEO – March 11, 2011.

The $260 million suit, filed by former American Apparel employee Irene Morales, was stayed last year after Slotnick argued Morales had acknowledged in writing she would submit any claims against the company to arbitration.

A California court had already compelled to arbitration a similar suit filed by Morales, a decision echoed in the New York ruling.

"It took a while, but the right result was reached," Slotnick said.