American Apparel APP Stock Purchasers File Securities Fraud Class Action Lawsuit Complaint Against American Apparel Over Alleged Misrepresentations Regarding Alleged Hiring Practices Relating To Undocumented Immigrant Workers.
A securities fraud class action lawsuit has been filed against American Apparel, Inc. (“American Apparel” or “APP”) and certain American Apparel officers and/or directors (collectively “Defendants”) in the United States District Court for the Central District of California on behalf of a class consisting of all purchasers of American Apparel common stock (symbol: APP) during the period between December 20, 2006 and August 17, 2010, inclusive (the “Class Period”), alleging that American Apparel, a designer, manufacturer and retailer of fashion apparel, and certain of its officers and/or directors violated federal securities fraud laws by issuing false and misleading statements related to American Apparel’s business, operations, hiring practices and financial performance, in violation of the Securities Exchange Act of 1934, according to class action lawsuit news reports.
The American Apparel securities fraud class action lawsuit complaint reportedly alleges, among other things, that American Apparel’s manufacturing was largely done using an undocumented immigrant workforce that was not disclosed to investors, thereby purportedly artificially inflating the price of American Apparel’s securities.
For more information on the American Apparel securities class action lawsuit, read the American Apparel class action complaint.
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