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The Briscoe Law Firm Investigates American Apparel, Inc. on Behalf of Shareholders for Possible Breaches of Fiduciary Duties by

^{Published on 2010-08-31 07:41:26 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--[ The Briscoe Law Firm, PLLC ], founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the law firm of Powers Taylor, LLP are investigating potential legal claims available to purchasers of American Apparel, Inc. (aAPPa or aCompanya) (AMEX: APP) during the period of December 20, 2006 and August 17, 2010.

"lower labor efficiency at the Companya™s production facilities."

It has been alleged that APP and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Companya™s hiring practices, and more specifically, that APP complied with U.S. employment and labor regulations. Moreover, the Company allegedly failed to disclose that its illegal hiring practices had a material impact on APPa™s costs and margins. It is further claimed that APP did not reveal the true impact of its illegal practices until the U.S. Immigration and Customs Enforcement began an investigation. Finally, on August 17, 2010, APP announced that it expected to report a loss of $5 million to $7 million in the second quarter of 2010 on net sales of $132 million to $143 million. According to APP, the loss was due to alower labor efficiency at the Companya™s production facilities.a As a result of American Apparela™s allegedly false statements, during the class period APPa™s stock price was artificially inflated, declining over 41% on August 18, 2010, the day after the announcement.

If you currently own or purchased American Apparel (APP) shares and would like additional information regarding this investigation, or if you have information regarding the allegations against American Apparel, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [ patrick@powerstaylor.com ], or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at [ WBriscoe@TheBriscoeLawFirm.com ]. There is no cost or fee to you.

[ The Briscoe Law Firm, PLLC ] is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a shareholder litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.