Mike Jeffries, the former CEO of Abercrombie & Fitch (NYSE:ANF) (A&F), is suing the company for not covering his legal expenses following accusations of running a sex trafficking operation, according to multiple reports.
This lawsuit emerged after a BBC investigation alleged that Jeffries exploited young men for sex during his tenure.
Jeffries' legal action is reportedly based on a contractual agreement with A&F, which promised to indemnify him against claims related to his role, encompassing civil, criminal and other types of claims.
The contract is said to have stipulated that A&F should reimburse or prepay his legal costs for such claims. However, A&F has declined his request for legal fee coverage, leading to this lawsuit being filed in Delaware state court.