One of three sexual harassment lawsuits launched against T-shirt giant American Apparel by ex-employees has been scrapped.

Los Angeles-based American Apparel said a case brought against it by a former district had been dismissed by a US federal judge.

The manager, who had been serving for the company for two and a half months, said she had been forced to work in a hostile environment. She complained about vintage magazine covers from publications such as Playgirl, Life and Look that were used to decorate the store.

The company responded by saying the covers were art and fashion artefacts. American Apparel lead counsel Joyce Crucillo said: "The company hopes to resolve the remaining cases very soon."

American Apparel operates more than 50 retail locations in the US and 30 internationally.