After taking an initial look at American Apparel (AMEX: APP), I cautioned investors that CEO Dov Charney's interesting management style -- which apparently includes public masturbation, sexual relations with employees, and posing nude for magazines -- might present a problem as the company makes the transition from private to public.Then the company drew some fire for its ad campaign touting immigration reform. I questioned whether it was appropriate for a public company to be using shareholder capital for an ad campaign that advanced the CEO's political views.
Now the strange saga of American Apparel gets a little more bizarre: Director Woody Allen has sued the company for $10 million, alleging that it used a photo of him dressed as a rabbi on billboard ads without his consent. Check out this post from The Jewish newspaper Daily Forward for more background/funny commentary on the picture choice.
The lawsuit alleges (subscription required) hat "Allen was unaware that AAI was going to utilize his image on its billboard and Web site. Allen was not contacted, nor did he in any way give his consent to the use of his image and likeness, and he was not in any way compensated for the same, either prior to the infringement or thereafter."
Very interesting. If American Apparel violated Allen's rights in depicting him in its advertisements, it could be further evidence of the unorthodox -- some would say unprofessional -- management style of the company. It might also raise additional concerns about American Apparel's legal counsel and controls.
That said, the company's huge growth -- fourth quarter same store sales growth of 40% -- might make the stock worth a look anyway.
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Reader Comments (Page 1 of 1)
4-01-2008 @ 11:08AM
dummy said...
You didn't report on APP's earning (massive 40% SSS), but you reports on the lawsuit. That alone makes this lawsuit worth the while for APP.
4-01-2008 @ 11:11AM
Lee Allen said...
Poor Woody. He, like chess genius Bobby Fischer, peaked out at an early age. Has Woody had a successful movie in the past 20 years?
4-01-2008 @ 11:29AM
jerpaul said...
Woody's the best given me hours of watching my family's on film. He has given the world much joy but American Apparel is a funny name? I looked into their production do you know how much of the products they make in the USA ? Zero , not on item is made in the USA. How can they call themselfs American Apparel ?
Jerpaul
4-01-2008 @ 1:15PM
Kathryn said...
American humorist Ryan Glaser wrote a short piece on Woody suing American Apparel. Funny stuff. You can read it here: ryanglaser.com
4-01-2008 @ 2:07PM
Dummy said...
jerpaul every piece of clothing American Apparel sell IS made in Downtown LA. Unless you think California is not part of the US.