A US court has ruled that Abercrombie & Fitch must cover former CEO Mike Jeffries’ legal fees as he defends against sex trafficking charges, despite the company’s stated disgust with his alleged conduct.
The fashion brand had attempted to avoid payment by arguing the charges—alleging Jeffries ran an international prostitution and sex trafficking operation—related to his personal life rather than his professional role. However, Judge Paul Fioravanti determined that the “horrific” charges filed last year were connected to Jeffries’ position as CEO, citing an indemnification agreement signed when Jeffries resigned in 2014.
This ruling creates significant financial implications for Abercrombie & Fitch, a billion-dollar company with over 750 stores worldwide, including the Hollister brand. Legal experts estimate the company’s costs will likely reach millions of dollars.
Questions remain about why A&F established such a comprehensive indemnity agreement when Jeffries departed more than a decade ago. The company has declined to comment on whether it was aware of any allegations against Jeffries at that time.
Jeffries, who led the retailer for 22 years, is currently free on bail after pleading not guilty alongside his British partner, Matthew Smith, and alleged trafficking middleman James Jacobson. The arrests followed a 2023 BBC investigation revealing a sophisticated operation recruiting young men for sex across the US and internationally.
“Jeffries’s conduct, as alleged in the indictment, as horrific as it is, has a causal connection to his official capacity and status as CEO of Abercrombie,” Judge Fioravanti stated in his ruling.
Beyond criminal case expenses, A&F was previously ordered to pay Jeffries’ civil case fees on similar grounds. The company also faces multiple lawsuits from alleged victims claiming A&F facilitated and funded Jeffries’ “criminal enterprise.”
Former federal prosecutor Neama Rahmani called the A&F agreement “unique” in covering criminal conduct: “Generally, criminal conduct is not something that you can insure for because it falls outside the scope of any company’s business.”
The criminal charges against Jeffries span 2008 to 2015. US prosecutors allege he exploited his position as CEO to “traffic men for his own sexual pleasure” and that of his partner.
While not criminally charged, A&F must now reimburse Jeffries for legal fees dating back to 2023 and advance funds for his ongoing defense. The company may incur additional costs from civil cases if courts order compensation or settlements are reached.
Despite the serious allegations, A&F continues reporting record sales of $4.95 billion in the past year. Law professor Heather Cucolo noted the company appears to have successfully managed public perception without financial detriment.
Following the investigation, A&F launched an independent review and suspended Jeffries’ $1 million annual retirement payments, stating that new leadership has transformed the company with “zero tolerance for abuse, harassment or discrimination.”
About the author
Usyk Forced to Face Surprise Challenger as Boxing Dream Fight Collapses
Oleksandr Usyk must begin negotiations to defend his WBO heavyweight championship against Joseph Parker, according to an official order from the boxing organization. This directive potentially derails British fighter Daniel Dubois's hopes for a rematch with the Ukrainian champion. The WBO announced Thursday that Usyk, who currently holds the WBC and WBA titles as well, has 30 days to reach an agreement with New Zealand's Parker for a mandatory defense or face a purse bid situation. Parker successfully defended his WBO interim title in Riyadh recently, stopping Martin Bakole in the second round after Dubois withdrew due to illness. Instead of rescheduling against Parker, IBF champion Dubois had been pursuing another bout with Usyk, who knocked him out in the ninth round in August 2023. The 27-year-old Dubois was reportedly in discussions for a fight with Usyk that would unify […]
England Star Wood Sidelined Just Before Major Ashes Showdown
Mark Wood is expected to miss England's complete home Test schedule this summer after surgery on his left knee. The 35-year-old fast bowler will be unavailable until late July, approximately when the five-Test India series concludes. This means Wood's next potential Test appearance would be during the Ashes tour in Australia starting in November. The Durham paceman's absence represents a significant setback for England during a year featuring two premier Test series. Coach Brendon McCullum and captain Ben Stokes, who favor express pace in their bowling attack, have now lost their quickest bowler for the summer home fixtures, raising questions about Wood's availability for the Australian tour. With Wood considered England's premier Test seamer, his injury further questions the decision to play him in the Champions Trophy. Fellow pacers face their challenges: Jofra Archer hasn't played Test cricket since 2021 […]
Top German Intelligence Agency Believes COVID Started as Chinese Lab Leak
Germany's foreign intelligence service (BND) assessed in 2020 that there was an 80-90% probability coronavirus accidentally leaked from a Chinese laboratory, according to German media reports. Two German newspapers uncovered details of a previously unpublished BND assessment. The intelligence agency reportedly had indications that the Wuhan Institute of Virology had conducted experiments modifying viruses to increase transmissibility to humans for research purposes. China has maintained its denial, stating the cause "should be determined by scientists" and referencing a World Health Organization investigation that concluded the lab-leak theory was "extremely unlikely." No scientific consensus exists regarding the pandemic's origin. While many scientists contest the lab leak hypothesis citing insufficient evidence, the theory has gained traction among intelligence agencies. In January, the US CIA assessed coronavirus "more likely" leaked from a lab than emerged from animals. According to Die Zeit and Sueddeutscher […]
South African Troops Flee Congo As Rebels Capture Major Cities
Southern African leaders have decided to withdraw their military forces from eastern Democratic Republic of Congo where they've been supporting government efforts against rebel fighters. The "phased withdrawal" decision was reached during a virtual summit of the 16-nation Southern African Development Community (Sadc) on Thursday. The troops were deployed two years ago to assist the Congolese army in its battle against the Rwandan-backed M23 rebels. However, the mission suffered a significant setback when at least 19 soldiers from South Africa, Malawi, and Tanzania were killed as M23 forces captured the strategic city of Goma in January. Despite the troop withdrawal, Sadc leaders affirmed their commitment to "support interventions aimed at bringing lasting peace" in the region. The announcement did not specify reasons for the withdrawal decision. The regional bloc emphasized the need for diplomatic and political solutions to resolve the […]
US Woman Arrested For Allegedly Holding Stepson Captive For 20 Years
A 32-year-old Connecticut man reportedly escaped two decades of captivity by setting fire to the small room where his stepmother allegedly held him prisoner, according to officials. Emergency responders arrived at the burning home and rescued the severely malnourished man from a 72-square-foot room. Weighing just 68 pounds when found, the man received treatment for smoke inhalation after his escape. Police in Waterbury, Connecticut said the man admitted to starting the fire after enduring "prolonged abuse, starvation, severe neglect, and inhumane treatment" for years. When asked why he set the fire, he simply told police: "I wanted my freedom." The man's stepmother, Kimberly Sullivan, 56, faces kidnapping and cruelty charges. She has denied all allegations against her. Prosecutors claim Sullivan provided the victim with only a sandwich and two small water bottles daily for years. He was allegedly permitted just […]
Abercrombie & Fitch To Pay Ex-CEO’s Legal Bills After Being Charged With Sex Trafficking
A US court has ruled that Abercrombie & Fitch must cover former CEO Mike Jeffries' legal fees as he defends against sex trafficking charges, despite the company's stated disgust with his alleged conduct. The fashion brand had attempted to avoid payment by arguing the charges—alleging Jeffries ran an international prostitution and sex trafficking operation—related to his personal life rather than his professional role. However, Judge Paul Fioravanti determined that the "horrific" charges filed last year were connected to Jeffries' position as CEO, citing an indemnification agreement signed when Jeffries resigned in 2014. This ruling creates significant financial implications for Abercrombie & Fitch, a billion-dollar company with over 750 stores worldwide, including the Hollister brand. Legal experts estimate the company's costs will likely reach millions of dollars. Questions remain about why A&F established such a comprehensive indemnity agreement when Jeffries departed […]
Related
Top German Intelligence Agency Believes COVID Started as Chinese Lab Leak
Germany's foreign intelligence service (BND) assessed in 2020 that there was an 80-90% probability coronavirus accidentally leaked from a Chinese laboratory, according to German media reports. Two German newspapers uncovered details of a previously unpublished BND assessment. The intelligence agency reportedly had indications that the Wuhan Institute of Virology had conducted experiments modifying viruses to increase transmissibility to humans for research purposes. China has maintained its denial, stating the cause "should be determined by scientists" and referencing a World Health Organization investigation that concluded the lab-leak theory was "extremely unlikely." No scientific consensus exists regarding the pandemic's origin. While many scientists contest the lab leak hypothesis citing insufficient evidence, the theory has gained traction among intelligence agencies. In January, the US CIA assessed coronavirus "more likely" leaked from a lab than emerged from animals. According to Die Zeit and Sueddeutscher […]
South African Troops Flee Congo As Rebels Capture Major Cities
Southern African leaders have decided to withdraw their military forces from eastern Democratic Republic of Congo where they've been supporting government efforts against rebel fighters. The "phased withdrawal" decision was reached during a virtual summit of the 16-nation Southern African Development Community (Sadc) on Thursday. The troops were deployed two years ago to assist the Congolese army in its battle against the Rwandan-backed M23 rebels. However, the mission suffered a significant setback when at least 19 soldiers from South Africa, Malawi, and Tanzania were killed as M23 forces captured the strategic city of Goma in January. Despite the troop withdrawal, Sadc leaders affirmed their commitment to "support interventions aimed at bringing lasting peace" in the region. The announcement did not specify reasons for the withdrawal decision. The regional bloc emphasized the need for diplomatic and political solutions to resolve the […]
US Woman Arrested For Allegedly Holding Stepson Captive For 20 Years
A 32-year-old Connecticut man reportedly escaped two decades of captivity by setting fire to the small room where his stepmother allegedly held him prisoner, according to officials. Emergency responders arrived at the burning home and rescued the severely malnourished man from a 72-square-foot room. Weighing just 68 pounds when found, the man received treatment for smoke inhalation after his escape. Police in Waterbury, Connecticut said the man admitted to starting the fire after enduring "prolonged abuse, starvation, severe neglect, and inhumane treatment" for years. When asked why he set the fire, he simply told police: "I wanted my freedom." The man's stepmother, Kimberly Sullivan, 56, faces kidnapping and cruelty charges. She has denied all allegations against her. Prosecutors claim Sullivan provided the victim with only a sandwich and two small water bottles daily for years. He was allegedly permitted just […]
Qatar Gas Deal Brings Light To Syria After Years Of Darkness
Qatar has started delivering natural gas to Syria through Jordan, addressing the country's severe electricity shortages and power outages, according to state news agency QNA. In a Thursday statement, Qatar announced that this initiative is part of an agreement signed with Jordan in cooperation with the United Nations Development Programme. The deal will provide natural gas supplies "generating power from 400 megawatts of electricity daily and gradually increase production at the Deir Ali power plant in Syria." This electricity will be distributed to numerous Syrian cities, including Damascus, Rif Dimashq, As Suwayda, Daraa, Al Qunaitra, Homs, Hama, Tartous, Latakia, Aleppo, and Deir ez-Zur. Fahad Hamad Hassan Al-Sulaiti, who heads the Qatar Fund for Development, described the initiative as "a pivotal step towards meeting the Syrian people's energy needs and reflects a shared commitment among all parties to work together for […]
Taiwan President Claims China Recruited Criminals And Police In Secret War
Taiwan's President William Lai Ching-te has warned of China's intensifying espionage and infiltration efforts against the island, announcing plans to counter Beijing's attempts to "absorb" Taiwan. In a Thursday press briefing following security meetings, Lai said China is cultivating relationships with various segments of Taiwanese society, including organized crime groups, media personalities, and police officers. "They are carrying out activities such as division, destruction and subversion from within us," Lai stated. The president emphasized the need for stronger measures against Chinese efforts to undermine Taiwan's defenses, pointing to recent incidents of psychological warfare that fall short of armed conflict. According to government data, 64 people were charged with Chinese espionage last year—triple the number from 2021. Most were current or former military officials. "Many are worried that our country, hard-earned freedom and democracy and prosperity will be lost bit by […]
US Supreme Court Rejects Trump Administration’s Request to Halt Foreign Aid Payments
A divided US Supreme Court on Wednesday rejected the Trump administration's request to maintain a freeze on billions of dollars in congressionally approved foreign aid. The Court did not specify when the funds must be released, allowing the administration to continue challenging the issue in lower courts. The 5-4 ruling saw Chief Justice John Roberts joining Justices Amy Coney Barrett, Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson in the majority. Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh dissented. The majority noted that since a court-ordered deadline to disburse the funds had already passed, lower courts should clarify what obligations the government must fulfill to comply with the temporary restraining order. The ruling doesn't require immediate payment of up to $2 billion in foreign aid; it simply allows the district court to potentially compel those payments with […]
Be the first to leave a comment