American Apparel Legal Update

More than two years after its initial filing, a wrongful-termination and sexual-harassment suit filed by former employee Mary Nelson against Los Angeles garment maker American Apparel Inc. and founder Dov Charney seems to be nearing a resolution. On Jan. 24, the two sides agreed to try to resolve the issue through binding arbitration.

If an agreement is not reached, the case will go to a jury trial in Los Angeles Superior Court. Nelson’s attorney, Keith Fink, reached by phone on Jan. 31, declined to give an update on the arbitration proceedings. American Apparel’s attorneys could not be reached for comment. —Erin Barajas