American Apparel employees be warned: if you want to go in front of a judge and bring up that an X-rated visit you paid The Dov, don't sign that legal thingamajig the company hands you upon your departure. Former AA employee Irene Morales filed a $260 million lawsuit against Dov Charney this week, claiming he held her captive in his Manhattan apartment once she turned 18, and forced her to perform sexual acts, and then subjected her to eight more "anguished months of forced sex." Even if this is true, however, Morales signed an agreement when she left the company stating she would not sue, and gave "a full release of claims and an agreement to submit any future claims to confidential binding arbitration."

Charney's lawyer, Stuart Slotnick, claims Morales had "made a number of extortion-like threats to expose the company to a threatened avalanche of litigation and negative publicity." Now as she attempts to do just that, Team American Apparel has delivered her signed documents to court and asked them to sanction Morales for illegal conduct. The company has not, however, disputed her claims.

According to the NY Post, a Brooklyn judge has put a temporary halt on the suit and ordered a hearing on whether it should be permanently stayed. Morales' lawyer claims the agreement his client signed is "improper and unenforceable."