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Published in House and Home on Tuesday, August 31st 2010 at 11:15 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
NEW YORK--([ BUSINESS WIRE ])--Faruqi & Faruqi, LLP, a leading New York securities firm, is investigating the Board of Directors and Officers of American Apparel, Inc. (aAmerican Apparela or the aCompanya) (AMEX: APP). The investigation focuses on possible breaches of fiduciary duties by the Board of Directors and/or Officers of the Company in connection with the Companya™s alleged illegal hiring practices and allegations that the Company may have issued materially inaccurate statements to investors concerning its 2009 financial results.
"primarily a result of the hiring of over 1,600 net new manufacturing workers during the second quarter of 2010."
In July 1, 2009, American Apparel announced the receipt of notifications from U.S. Immigration and Customs Enforcement notifying the Company that based upon its review of government databases, approximately 1,600 current employees did not appear to be authorized to work in the United States. Then, on August 17, 2010, American Apparel announced that the Company expected to report a loss from operations of $5 million to $7 million in the second quarter of 2010 on net sales of $132 million to $143 million, citing alower labor efficiency at the Companya™s production facilities in the second quarter of 2010 compared to the prior year perioda that was aprimarily a result of the hiring of over 1,600 net new manufacturing workers during the second quarter of 2010.a In addition, on March 31, 2010, American Apparel revealed that its auditor Deloitte & Touche LLP (aDeloittea) identified material weaknesses in American Apparela™s internal controls over financial reporting. On July 28, 2010, the Company announced that Deloitte had resigned and that the Companya™s 2009 financial statements may not be reliable.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action and derivative litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, through all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firma™s clients.
If you own common stock in American Apparel and wish to obtain additional information, please visit us at [ http://www.faruqilaw.com/americanapparel ] or contact Juan E. Monteverde, Esq. either via e-mail at [ jmonteverde@faruqilaw.com ] or by telephone at (877) 247-4292 or (212) 983-9330.
Attorney Advertising.(C) 2010 Faruqi & Faruqi, LLP. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ([ www.faruqilaw.com ]). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We are happy to discuss your particular case.
