A US judge has decided that Abercrombie & Fitch must cover former CEO Mike Jeffries’ legal costs as he fights criminal allegations of sex trafficking. When the former CEO quit in 2014, the fashion brand, which had previously expressed its “appalled and disgusted” feelings about Mr Jeffries’ alleged behavior, signed a contract that would pay for any criminal charges that might have resulted from his employment.
The corporation had said in court that the accusations, which claimed that Mr. Jeffries operated a global prostitution and sex trafficking enterprise, had more to do with his personal life than his employment.
The court’s decision may have major legal and financial repercussions for Abercrombie & Fitch (A&F), a billion-dollar publicly traded corporation that owns more than 750 locations worldwide, including the Hollister brand. Legal experts informed the BBC that the company’s bill is expected to reach millions of dollars.
The ruling also calls into question why the business made the extensive indemnity arrangement more than ten years ago, when Mr. Jeffries resigned. A&F declined to comment when the BBC previously questioned it about the circumstances behind this arrangement and whether it was aware of any accusations made against Mr. Jeffries at the time.
Also Read:
Key Trends Developing in Global Equity Markets
Trade Tariffs and the Competitiveness Gap are Identified by the ECB as Growth Threats
