The Board of directors of apparel retailer American Apparel Inc (NYSEMKT:APP) and ousted founder Dov Charney are continuing to trade blows in their bizarre battle for control of the firm. Former CEO Charney, who has been dogged by sexual harassment claims for years, was fired by the the BoD a few weeks ago with cause. Tuesday, July 1st, Charney announced he has upped his stake in the firm from 27.2% to 42.98% (as of Friday) and also called for a special meeting of stockholders on September 25th.

American Apparel

American Apparel recently adopted shareholder rights plan

When it became clear that Charney was not going to go without a fight, the BoD of American Apparel Inc (NYSEMKT:APP) adopted a stockholder rights plan designed to prevent ousted CEO Dov Charney from taking back control of the company he founded.

A special committee of American Apparel’s BoD adopted the plan after Charney stated his “intent to acquire control or influence over the company” in a Friday filing with the SEC, the company said in a statement released over the weekend.

“The rights plan is designed to limit the ability of any person or group, including Dov Charney, to seize control of the company without appropriately compensating all American Apparel shareholders,” the statement explained. “It is intended to provide the board of directors and stockholders with time to make informed judgments.”

American Apparel Inc (NYSEMKT:APP)  “poison pill” plan gives shareholders the right to purchase one ten-thousandth of a share of preferred stock at an exercise price of $2.75. Furthermore, if any person or group acquires more than 15% of the company, existing stockholders can purchase additional shares of the firm’s common stock for $2.75 a share.

Charney fired for multiple employee lawsuits and alleged assault on manager

American Apparel Inc (NYSEMKT:APP)’s BoD finally decided to act this summer after years of alleged misconduct by Charney. Arbitration records are typically sealed, so there’s no way to know about all of the legal tussles with current and former employees Charney has been involved in, but his long-running legal battles with two former female employees —Mary Nelson and Irene Morales — are on the record.

In May, information about another lawsuit against Charney, filed by Michael Bumblis, a former American Apparel Inc (NYSEMKT:APP) store manager in Malibu, Calif., who claims that Mr. Charney called him a homophobic slur and assaulted him by grabbing him around the neck and smearing his face with dirt. Charney allegedly lost control and assaulted Bumblis because he was unhappy with the store’s condition.