American Apparel Shareholder Litigation Settlement Website
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Welcome to the American Apparel Shareholder Litigation Settlement Website

On October 20, 2016, pursuant to the Order Authorizing Distribution of the Net Settlement Fund (the “Distribution Order”), payments were made to all Authorized Claimants whose claims were approved for payment subject to the requirements set forth in the Distribution Order.

This website has been established to provide general information regarding the proposed settlement of the action In re American Apparel, Inc. Shareholder Litigation, Case No. CV-10-6352 MMM (JCG) pending in the United States District Court for the Central District of California ("Action"). The capitalized terms used on this website and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation and Agreement of Settlement dated January 17, 2014. A copy of the Stipulation and Agreement of Settlement can be found by clicking here.

 Important Dates and Deadlines

Exclusion Submission Deadline July 7, 2014
Objection Filing Deadline July 7, 2014
Settlement Hearing July 28, 2014 at 10:00 a.m.
Claim Submission Deadline September 2, 2014

 

The Action is a class action lawsuit brought by investors alleging that the price of American Apparel, Inc. common stock was artificially inflated during the Class Period as a result of alleged false and misleading statements and omissions by the American Apparel Defendants during the Class Period concerning, inter alia, the Company's compliance with immigration laws and certain financials in the Company's 2009 Annual Statement.

The Court-appointed Lead Plaintiff Charles Rendelman, on behalf of himself and the Class, has reached a proposed settlement of the Action with defendants American Apparel, Inc., Dov Charney, Adrian Kowalewski, Lion Capital LLP and Lion Capital (Americas) Inc. for a total of $4.8 million in cash that will resolve all claims in the Action. In addition to the $4.8 million monetary recovery, the Parties have also agreed that, following the Court's entry of an order granting final approval to the proposed settlement, the Company's General Counsel and Chief Financial Officer ("CFO") will meet with Lead Plaintiff to in good faith discuss his views on the Company's retail operations. The General Counsel and CFO shall subsequently report Lead Plaintiff's positions to the Company's Chief Executive Officer and Head of Retail Operations for their review and, in their sole discretion, possible implementation.

Lead Plaintiff and the members of the Class are represented by Kessler Topaz Meltzer & Check, LLP, the Court-appointed Lead Counsel in the Action.

The Court has preliminarily certified the following Class for purposes of settlement: all persons and entities who purchased or otherwise acquired the publicly traded common stock of American Apparel, Inc. between November 28, 2007 and August 17, 2010, inclusive.  Excluded from the Class are Defendants, the directors and officers of American Apparel, Inc. and their families and affiliates. The Class also does not include those persons and entities who timely request exclusion from the Class pursuant to the Notice.  You can obtain a copy of the Notice here. If you are a member of the Class and wish to submit a Claim Form, you can obtain a copy of the Claim Form here.

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice or the Stipulation and Agreement of Settlement, both of which can be found and downloaded from this website. Please read the Notice and other relevant case documents to fully understand your rights.

This website will be updated as more information becomes available.  Please check back periodically for updates regarding the proposed settlement.