Apple Wins Lawsuit, American Apparel Fires Tarnished CEO

In the last 24 hours Apple was victorious in fighting the class-action lawsuit over its iPod prices and American Apparel has officially fired its founder and CEO. Here's a closer look at these stories.

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In the last 24 hours Apple was victorious in fighting the class-action lawsuit over its iPod prices and American Apparel has officially fired its founder and CEO.

APPLE

The AP has reported that a federal jury decided Tuesday that Apple didn't compete unfairly when it sold music players and songs with copy-protection software that was incompatible with rival devices and music from competing online stores. The case was originally filed in 2005 and covered an estimated 8 million consumers who purchased iPods from 2006 to 2009, when the software was still in place.

The jury deliberated for only three hours before deciding that Apple’s argument, which claimed that the copy-protection software was necessary and part of a larger package of improvements that made iPods and iTunes popular, was justified.

Apple no longer uses the copy-protection software in question, so the ruling has no effect on the company's current practices.

Check out this analysis on the lawsuit from Bloomberg Business: 

AMERICAN APPAREL

The AP also reported that the troubled American Apparel has fired founder Dov Charney and named longtime fashion executive Paula Schneider to be its next CEO.

American Apparel Inc., which Charney founded in 1998, manufactures clothes and sells them in 245 of its own retail stores in 20 countries, and has about 10,000 employees. It is famous for selling American-made goods and for its risque advertising.

Charney has also been the subject of several lawsuits that allege inappropriate sexual conduct with female employees that the former CEO insists were consensual relationships. The company’s board suspended the CEO in June, after which Charney began buying up company stock to try and regain control of the company. The board was able to stop Charney’s actions with a one-year shareholder rights plan designed to limit the ability of any person or group to seize control of the company.

Check out this discussion on what’s next for the tarnished CEO: 

What Do You Think?

Did Apple compete fairly when it used copy-protection software, essentially shutting out competition? Will firing Dov Charney help American Apparel turn things around? Tell us what you think by leaving your comments below. 


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