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"The power imbalance was extreme, and Mr Jeffries and Mr Smith used it shamelessly while Abercrombie & Fitch ignored the obvious for the sake of corporate profits."

One of the models alleges that Mr Jeffries sexually assaulted him after taking his pictures, telling him that "Abercrombie models get special treatment".

Ruling that Mr Jeffries' indemnification agreement does cover the criminal charges against him, Judge Paul Fioravanti said: "In my view, 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."

Mr Rahmani said the Abercrombie & Fitch agreement was "unique" in its coverage of criminal conduct.

Abercrombie & Fitch must pay for the legal fees of former CEO Mike Jeffries as he defends criminal charges of sex trafficking, a US court has ruled.