Ex-CEO Sues Abercrombie & Fitch for Legal Fee Coverage Mike Jeffries, the former head of Abercrombie & Fitch, has initiated legal action against the retail giant. Jeffries is seeking compensation for legal fees arising from accusations of running a sex trafficking operation during his tenure as CEO. A lawsuit filed in October accused the American retailer of backing a criminal enterprise led by Jeffries over two decades, as reported following a BBC investigation.
The Allegations and Contractual Claims Allegations emerged that Jeffries exploited young men for sex while serving as CEO. In response, Jeffries asserts that his contract with Abercrombie & Fitch included a clause to indemnify him against any claims linked to his position, covering civil, criminal, or administrative claims. Despite this agreement, A&F has reportedly refused to reimburse or advance his legal fees.
Background of the Controversy Jeffries, credited with transforming A&F in the 1990s into a successful teen retail brand, resigned in 2014 amid falling sales. A BBC Panorama documentary and podcast series unearthed an alleged sex-trafficking operation involving Jeffries and his partner, Matthew Smith. The operation purportedly spanned from 1992 to 2014, with events in global cities like London and New York.
Class Action Lawsuit Against A&F A civil lawsuit filed in New York is seeking class action status, accusing A&F of funding the alleged sex trafficking. The lawsuit suggests that over 100 men might have been victims of sexual abuse under Jeffries’ leadership. It also alleges that A&F’s resources, including a corporate jet and cash, were used in these operations.
Legal Standoff and Company’s Response Jeffries, demanding reimbursement for his legal expenses, has filed a lawsuit in Delaware state court after A&F rejected his initial demand and ignored subsequent requests. The lawsuit emphasizes that Jeffries’ actions were purportedly in his capacity as Abercrombie’s CEO. While Abercrombie & Fitch has not commented on the ongoing litigation, the unfolding legal battle raises significant questions about corporate responsibility and contractual obligations.
