American Apparel's ousted CEO fights back

American Apparel's ousted founder, Dov Charney, has hired lawyer Patricia Glaser to fight back against the move.

Glaser wrote to the company's board, saying American Apparel "violated its legal and contractual obligations to Mr. Charney in numerous respects" that have resulted in "substantial professional, reputational and financial injuries to Mr. Charney." Further, she said Charney was given two options: step aside quietly and take a creative role that would pay $1 million a year or face being fired without cause.

"By presenting Mr. Charney with this absurd and unreasonable demand, the company acted in a manner that was not merely unconscionable but illegal," Glaser claims in her letter to the board.

According to CNNMoney, Charney was presented with the options after he engaged in alleged sexual harassment acts.

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