The lawsuit says Charney harassed a former store manager, Michael Bumblis, at an industry convention, accusing him of moonlighting for a rival company. Allegedly, Charney called Bumblis at the convention a "wannabe Jew" and a "fag."
A few weeks later, during a store inspection, Charney allegedly "dove" at the store manager and tried to "choke and strangle him," the lawsuit says.
The Los Angeles Times reported Wednesday that Charney is also accused of trying to rub dirt in Bumblis' face during the incident.
"Michael Bumblis was recently terminated by American Apparel for reasons consistent with company policy. In addition to the conduct that led to his termination, Mr. Bumblis has also now violated his written agreement to arbitrate any disputes with the company," said the company's attorney Peter Schey in a response to the lawsuit.
Schey also said he "fully expected to win," any legal confrontation, predicting the lawsuit would be dismissed, "as it has been done with all similar cases filed against the company in the past."
Notable deaths of 2014 [PHOTOS]
Larry Ellison to step down as CEO of Oracle