Two hedge funds are being sued by Charming Shoppes Inc., after they allegedly used shady tactics to nominate 3 members to the board of the company.

The plus-size clothing retailer is accusing Crescendo Partners and Myca Partners of filing "misleading and incomplete documents" with the Securities and Exchange Commission to win shareholder support for their nominees.

The two hedge funds filed the documents on February 28, citing a variety of complaints, including the company's "disastrous stock performance" and a "lack of focus on core assets." Charming Shoppes shares are trading at around $5, close to their 12-month low. Last year, their stock reached over $13 a share.

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