As reported by the New York Post, Buchanan Ingersoll & Rooney litigator Stuart Slotnick won a temporary stay on the sexual-harassment case against American Apparel CEO Dov Charney on March 10, 2011.
The $260 million suit, filed in the Brooklyn Supreme Court by former American Apparel employee Irene Morales, is on hold until March 25, when the judge has ordered a hearing to determine if the stay will become permanent.
Slotnick said that Morales "brought this action after making a number of extortion-like threats to expose the company to a threatened avalanche of litigation and negative publicity."
In requesting the stay, Slotnick noted that upon her resignation Morales signed an agreement stating arbitration, not litigation, would be used to settle any disputes. He also requested the judge sanction Morales for bringing "frivolous litigation."