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STANDARD GENERAL L.P. v. CHARNEY

C.A. No. 11287-CB.

STANDARD GENERAL L.P., STANDARD GENERAL MASTER FUND L.P., P STANDARD GENERAL LTD., Plaintiffs, v. DOV CHARNEY, Defendant.

Court of Chancery of Delaware.

Decided: December 19, 2017.

Attorney(s) appearing for the Case

Raymond J. DiCamillo & Matthew D. Perri , RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware; Shannon Rose Selden , Derek Wikstrom & Justin Horton , DEBEVOISE & PLIMPTON LLP, New York, New York; Attorneys for Plaintiffs.

Mark M. Billion , BILLION LAW, Wilmington, Delaware; Attorney for Defendant.

MEMORANDUM OPINION

In June 2014, the board of directors of American Apparel, Inc. suspended its founder, Dov Charney, from his position as Chief Executive Officer for alleged misconduct. Hoping to take control of the Company, Charney teamed up with Standard General, L.P., an investment firm. Charney borrowed approximately...

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