From a declaration filed in June in a lawsuit against Dov Charney, the founder and former CEO of American Apparel, by Colleen Brown, who is the chairperson of the company’s board of directors. In the spring of 2014, American Apparel’s audit committee launched an investigation into allegations of misconduct against Charney; he was fired in December.

The company discovered voluminous evidence of Mr. Charney’s sexual liaisons with employees and models. He frequently engaged in sexual banter and referred to himself as “Daddy.” The company also discovered videos and photographs of Charney engaged in all manner of sexual behavior with…