American Apparel attributed the suspension to Charney’s alleged misuse of company funds and failure to stop a subordinate from posting false blog entries about former employees. In the defamation case, Charney said that Standard General, through its alleged control of American Apparel’s board, paid outside law firm Jones Day millions of dollars to “manufacture” reasons to show he was not fit to be chief executive in a “sham” probe into his conduct that would justify his removal. “The facts speak for themselves, and we are confident that Mr.