American Apparel Settles Worker Death Suit for $1M

September 12, 2014

American Apparel will pay $1 million to settle a California lawsuit over the death of an employee in a knitting machine accident.

The Orange County district attorney’s office announced the settlement Tuesday. The worker’s daughter will receive $150,000 of the money – the rest covers civil penalties and the cost of the accident’s investigation.

The employee, 49-year-old Tuan Phan, was mangled by the machine at the company’s Garden Grove factory in 2011. The lawsuit said the machine had been turned off, but wasn’t locked and disconnected from its power source for maintenance.

American Apparel told the Los Angeles Times that it didn’t believe any safety laws were violated and settled to avoid further legal expenses. The company also said it’s committed to providing a safe workplace.

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