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Levi & Korsinsky, LLP Investigates American Apparel, Inc.

  //house-home.news-articles.net/content/2010/08/1 .. insky-llp-investigates-american-apparel-inc.html
  Published in House and Home on Tuesday, August 10th 2010 at 17:00 GMT by Market Wire
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NEW YORK--([ BUSINESS WIRE ])--Levi & Korsinsky is investigating potential claims against American Apparel, Inc. (aAmerican Apparela or the aCompanya) (AMEX: APP) for potential violations of the state and federal securities laws. Concerned shareholders should contact Joseph Levi at 877-363-5972 or by email at [ jlevi@zlk.com ] for more information.

"potential material errors to the [December 31, 2009] consolidated financial statements."

On March 31, 2010, American Apparel disclosed an audit report issued by Deloitte & Touche, LLP (aDeloittea) which identified material weaknesses in the Companya™s internal controls over financial reporting. These weaknesses led to deficiencies in the analyzing and recording of certain inventory costs, cost of sales, and the preparation of account analyses, account summaries and account reconciliations. The Company also did not perform adequate and independent reviews and maintain effective controls over the preparation of its financial statements. As a result, there is an increased likelihood of apotential material errors to the [December 31, 2009] consolidated financial statements.a On July 22, 2010, Deloitte resigned as the independent registered public accounting firm of American Apparel. On July 29, 2010, after Deloittea™s resignation was announced to the public, American Apparel shares promptly dropped from $1.81 per share to close at $1.55 per share, on abnormally high trading volume.

If you purchased the common stock of American Apparel between January 1, 2008 through July 29, 2010 and would like to discuss this action, or if you have any questions concerning your rights as a potential class member, please contact Joseph Levi either via email at [ jlevi@zlk.com ] or by telephone at 877-363-5972, or visit [ http://www.zlk.com/american-apparel.html ].

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.