Posts Tagged ‘Ramzi Abadou’

Pwned! San Francisco Law Firm Barroway Topaz Drops the Hammer on American Apparel

Tuesday, August 31st, 2010

I’ll tell you, when your stock price goes from $15 per share all the way down to less than the cost of a BK Buck Double, you’ve got to start worrying about one of them shareholder derivative class action lawsuits.

As here, today, in the 415, where the San Francisco law office of Barroway Topaz Kessler Meltzer & Check, LLP right there at 580 California Street has just announced such a suit.

What’s the beef? Well:

“…the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them:  (1) that they had made “diligent efforts” to comply with labor and employment regulations, when in fact they had not done so; (2) that they failed to disclose to investors, and made false statements regarding facts surrounding the Company’s illegal hiring practices and its effect on the Company’s operating costs and margins; (3) that they failed to disclose or indicate that the Company lacked adequate internal and financial controls; (4) that they failed to disclose that, as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times; and (5) that they failed to disclose that, as a result of the foregoing, their statements regarding the Company’s prospects were false and misleading at all relevant times.”

Uh oh. Is this the beginning of the end for those sexy, NSFW, ubiquitous and risque Internet ads?

Possibly. First, all that trouble down in the Mission, and now this.

All the deets, after the jump

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