American Apparel Inc
announced that on Monday a Delaware court had granted its request for a restraining order against former Chief Executive Dov Charney.
In a regulatory filing on Tuesday, the Los Angeles retailer said that the order temporarily restrains Charney from breaching terms of a 2014 agreement signed last year, including making disparaging statements in the press against the company or its employees and the removal of any the company's board members.
"The standstill is an agreement that Mr. Charney has to abide by,"
Delaware Chancery Judge Andre Bouchard said. "He may not like it but he has to deal with it."
Last month American Apparel had filed for the lawsuit
after Charney and his allies filed a flurry of lawsuits and sued the retailer for $30 million in damages thereby violating the terms of a deal that he agreed to.
Charney is still the largest shareholder of the company he founded in 1998 and has been engaged in a war of words with company officials since June 2014, when the board voted to suspend him and later fired him for alleged misconduct. A hearing on whether to extend the ruling may be held as early as June 30.