Lululemon sued for fraud over sheer yoga pants, CEO exit
(REUTERS) - Lululemon Athletica Inc has been hit with a United States (US) lawsuit accusing it of defrauding shareholders by hiding defects in yoga pants whose sheerness led to a costly recall, and concealing talks that led to the sudden departure of its chief executive.
The lawsuit in the US district court in Manhattan was filed by a shareholder on Tuesday, three weeks after Lululemon Chief Executive Christine Day announced her surprise exit after 5-1/2 years at the helm, calling it a personal decision.
It is separate from a May lawsuit filed in Delaware Chancery Court that accused Lululemon directors of boosting possible executive bonuses just before the recall.
Lululemon did not immediately respond to requests for comment.