Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased American Apparel, Inc., Announces Class Action Lawsuit and Seeks to Recover Losses

Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased the securities of American Apparel, Inc. ("American Apparel” or the "Company”) (AMEX:APP) between December 19, 2006 and August 17, 2010, inclusive (the "Class Period”).

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.

The Complaint charges American Apparel and certain of the Company’s executive officers with violations of federal securities laws. American Apparel is a designer, manufacturer and retailer of fashion apparel for women, men, children and pets. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning the Company’s business, operations and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was not complying with labor and employment regulations, including immigration laws; (2) that the Company was not making "diligent efforts” to comply with employment and labor regulation; (3) that, contrary to the Company’s representations, many of the Company’s workers were undocumented immigrants and not authorized to work in the United States; (4) that the Company’s business would be materially impacted if the Company were forced to comply with labor and employment regulations, including immigration laws; and (5), that the Company lacked adequate internal controls.

During July 2009, American Apparel disclosed that it was being investigated by U.S. Immigration and Customs Enforcement in regards to the Company’s compliance with federal immigration laws. Defendants, however, repeatedly assured investors that the investigation would not materially impact the business

Subsequently, on August 17, 2010, American Apparel announced its preliminary financial results for the Company’s 2010 fiscal second quarter and that the Company expected to report a loss of $5 million to $7 million for the quarter, due to "lower labor efficiency at the Company’s production facilities” after having to hire over 1,600 new manufacturing workers during the quarter. Moreover, the Company announced that it "may not have sufficient liquidity necessary to sustain operations for the next twelve months” and that there was "substantial doubt that the Company [would] be able to continue as a going concern.”

As a result of this news, shares of American Apparel declined $0.36 per share, or nearly 26%, to close on August 17, 2010, at $1.03 per share on unusually heavy volume, and further declined an additional $0.22 per share, to close on August 18, 2010, at $0.81 per share, on unusually heavy volume. Over the course of these two days of trading, shares of American Apparel declined more than 41% – a total of $0.58 per share.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than October 25, 2010, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.