They sued Gailen not only because of doing parody videos of the company dressed as a woman but it also cost them to lose a lot of money, etc. The rest is in the link below from Msn.com
http://overheadbin.msnbc.msn.com/_news/2012/04/12/11167668-american-airlines-sues-former-flight-attendant-behind-parody-videos?lite
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