Top Left: American Apparel CEO Dov Charney, Top Right: 2004 American Apparel Ad, Bottom Left: 2007 American Apparel Ad, Bottom Right: 2011 American Apparel Ad

Should it be any surprise that American Apparel pornographer CEO Dov Charney, who has a penchant for distasteful porn-ish advertising, is being accused of using a teenage employee as a sex slave in 2008?

Sources are reporting that Irinia Morales, a former employee of the controversial brand, who is now 20, has filed a lawsuit on Friday in Brooklyn Supreme Court and is seeking $260 million in damages against  Charney for being held against her will and forced to perform sex acts.

According to the suit, in April of 2008, when Morales was 18, Charney invited her over to his Manhattan apartment, opened the door wearing nothing but briefs, and “forced her to go down on her knees just inside the front door and perform fellatio upon him.”

The suit further alleges that, “She was then, to all intents and purposes, held prisoner in the apartment for several hours and forced to perform additional sexual acts.”

Here’s what American Apparel had to say in a statement in response to the allegations:

“American Apparel has issued a statement responding to the allegations

We have been informed today that [redacted], a former employee of American Apparel who left the company without complaint and resigned with a letter of gratitude regarding her positive experience at the company, has filed a sexual harassment lawsuit in New York against the company.

Upon her resignation, [the employee] acknowledged in writing that she had no pending claims against the company and signed a severance agreement which included a full release of claims and an agreement to submit any future claims to confidential binding arbitration. All American Apparel’s employees are subject to the same confidential arbitration agreement signed by [the employee] in order to protect the privacy interests of employees and former employees, and to prevent predatory plaintiffs and their attorneys from attempting to use the media to extort the company. Such an arbitration process was initiated by the company against [the employee] several weeks ago.

The company intends to file a formal complaint with the NY state bar seeking disciplinary action against [the employee’s] lawyers who we believe are engaged in an illegal conspiracy to extort money from American Apparel. We are very confident that [her] claims will be promptly referred by the court to confidential binding arbitration where her claims and the company’s counter-claims will be resolved, we believe fully in favor of the company.”

This is not the first suit filed against Dov Charney, but may be the most damning, as the suit claims Charnery’s sexual advances started in the summer of 2007, when Morales was only 17.