×
89 971
Fashion Jobs
BLOOMINGDALE'S
Asset Protection Supervisor, Full Time - ny 59th st
Permanent · NEW YORK
ULTA BEAUTY, INC.
Portfolio Manager IT
Permanent · Bolingbrook
MACY'S
Asset Protection Detective, South Shore Plaza - Full Time
Permanent · Braintree
ABERCROMBIE AND FITCH CO.
Asset Protection Agent
Permanent · San Francisco
H&M
Part Time Cleaning Technician
Permanent · NEW YORK
SAKS
2nd Shift Asset Protection Associate
Permanent · LA VERGNE
SAKS
2nd Shift Inventory Control Processor
Permanent · LA VERGNE
FABLETICS
Art Director - Yitty
Permanent ·
UNDER ARMOUR
Stock Teammate, Part-Time 5:00 am Tuesday - Saturday Shift, Starting Pay $15.25 Per Hour
Permanent · SAN DIEGO
BLOOMINGDALE'S
Asset Protection Visual Security Officer, Full Time - Sherman Oaks
Permanent · LOS ANGELES
MACY'S
Asset Protection Detective, Roosevelt - Full Time
Permanent · Philadelphia
MACY'S
Retail Cosmetics Stock - Estee Lauder, Flushing - Full Time
Permanent · New York
MACY'S
Asset Protection Officer, Bailey Road - Full Time (3840)
Permanent · North Jackson
KOHLS
Financial Analyst
Permanent · Menomonee Falls
GAP
General Manager - Glendale Galleria
Permanent · Glendale
MACY'S
Asset Protection Security Guard, Herald Square - Full Time
Permanent · New York
MACY'S
Asset Protection Detective, Northpark Center - Part Time
Permanent · Dallas
MACY'S
Asset Protection Detective, Manhattan Beach - Full Time
Permanent · Manhattan Beach
ABERCROMBIE AND FITCH STORES
Abercrombie & Fitch - Manager in Training, Dadeland
Permanent · Miami
AESOP
Part Time Retail Consultant | Seaport
Permanent · Boston
KOHLS
Distribution Center Operations Manager
Permanent · Patterson
PAUL SMITH
Sales Supervisor- Wooster Street
Permanent · NEW YORK
By
Reuters
Published
Oct 2, 2013
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Lululemon lawsuit over sheer yoga pants gets lead plaintiff

By
Reuters
Published
Oct 2, 2013

A Louisiana pension fund will lead U.S. litigation accusing Lululemon Athletica Inc of fraudulently hiding defects that caused yoga pants to become nearly sheer, and concealing talks that led to the surprise departure of its chief executive.

U.S. District Judge Katherine Forrest in Manhattan on Tuesday said the Louisiana Sheriffs' Pension & Relief Fund, which owned about $1.3 million of Lululemon stock, will handle the litigation on behalf of shareholders.

Lululemon has long been known for making athletic clothing that could withstand many years of wear and washes.

Source: Lululemon

But trouble surfaced in March when the Vancouver, British Columbia-based company recalled its top-selling item, women's black yoga pants containing its proprietary Luon fabric, after determining the pants were too sheer.

Less than three months later, Lululemon on June 10 announced the departure of Chief Executive Christine Day. Its shares fell 17.5 percent the next day, wiping out $1.62 billion of market value, Reuters data and a regulatory filing show.

Two lawsuits filed in Manhattan blamed the defective pants on cost-cutting, and accused Lululemon, Day and Chairman Dennis "Chip" Wilson of hiding the defects, using deep discounting to boost market share, and concealing plans to replace Day.

Forrest combined the lawsuits and said the Louisiana fund should lead the case because it had a larger financial stake than the other plaintiff, Houssam Alkhoury of Natick, Massachusetts, and was a "sophisticated institutional investor" with experience leading similar lawsuits.

The Baton Rouge-based fund plans to seek class-action status for shareholders between March 21, when full-year results were announced, and June 10. It said it lost $116,000 on transactions in that period. The fund's law firm is Bernstein Litowitz Berger & Grossmann, a shareholder class-action specialist.

A lead plaintiff is entitled to direct litigation and negotiate a settlement on behalf of other shareholders.

On Sept. 12, Lululemon reduced its forecast for fiscal 2013 profit and sales, citing delivery delays resulting from tighter quality control. Day remains at the company's helm while Lululemon searches for a successor.

© Thomson Reuters 2022 All rights reserved.