Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.
While American Apparel continues to take over every remaining storefront in Manhattan, its CEO, Dov Charney, is busy fighting an increasingly complicated lawsuit. The Mary Nelson story was already painfully convoluted, but we'll summarize: Nelson, a former AA employee, sued for sexual harassment. American Apparel agreed to settle for $1.3 million if she'd allow them to send out a press release announcing that arbitration had "found" Charney not guilty. Perhaps unsurprisingly, the scam fell apart, the news hit the media, and everyone came out looking slimy.
Now, it's all gotten even slimier. The blog Hollywood, Interrupted has dug up legal documents accusing Mary Nelson's lawyer, Keith Fink, of helping her fake a reduced income so that she could claim getting fired from AA forced her to take a low-paying job.