Judge sides with Lululemon in stock recall case
A judge has said a lawsuit against yogawear brand Lululemon in which it was alleged bosses defrauded shareholders should be dismissed.
Investors have accused Lululemon of failing to disclose how its black luon yoga pants were too sheer, covering up an inability to address shortfalls and concealing plans to replace former chief executive Christine Day.
The case arose after shoppers found that pants containing Lululemon's luon fabric were see-through when worn and 17% of stock was recalled with a loss of roughly $2 billion of market value for the Canadian company.
However, the judge said: "We are not yet at a point when an apparel company's failure to employ testing by live models renders statements touting high quality false and misleading."
