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American Apparel Inc. on Dov's Indiscretions: Nothing To See Here, Folks

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The sexual harassment lawsuit filed by American Apparel employee Mary Nelson against company founder Dov Charney will not play out in court, as WWD reports that AA and Dov have "agreed to binding arbitration" (quick Wikipedia definition: arbitration is a legal technique for the resolution of disputes outside the courts). Nelson is accusing Charney of generally being piggish, specifically of "holding meetings in his underwear and using vulgar language that disparaged women." Dov's attorneys have constructed an ironclad defense strategy, though:

Attorneys for Charney and Los Angeles-based American Apparel argue the language was part of the creative process, and said Charney was acting as a fit model for the company when he appeared in his underwear.
See? There's nothing strange about your boss coming to a meeting in just his skivvies. Nothing strange or sleazy about that at all.
· In Brief: American Apparel Lawsuit... Nordstrom Expands... Anne Klein Departure... [WWD, subscription req]