American Apparel Nail Polish

American Apparel has filed a suit against the nail polish's manufacturer, Forstyth for $5 million. Courtesy of American Apparel

There's breaking news from beloved-but-edgy basics retailer American Apparel regarding its nail polish line.

According to a report in the New York Post, American Apparel has filed suit against the nail polish's manufacturer, Forsyth, in Manhattan federal court. The suit seeks upward of $5 million for fraud, product liability and breach of contract.

In court papers, Forsythe denied the allegations, calling them "a suspense-novel-worthy chain of melodramatic alleged events."

American Apparel issued the following statement about the case:

American Apparel set out to produce this nail lacquer collection with a Made in USA company, and our deep affection for this family-owned corporation was a motivating factor in our decision to work with Forsythe. But one thing we value even more is the safety and health of our customers. This is why American Apparel paid for the costly international recall out of its own pocket, even trading one old bottle for two new bottles of polish to all customers, immediately after we discovered problems with the packaging. We wish no ill-will towards this fellow American manufacturer, but need to seek a fair and accountable solution to this incident.

In related news, American Apparel got jaws dropping with their raciest ads yet.

Watch the video below featuring celebrity manicurist Jill from Spa Chicks on the Go for tips on giving yourself a gorgeous manicure in no time flat.