lululemon Sued for Fraud in Yoga Pants Fiasco
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A lawsuit has been filed against lululemon athletica, accusing it of defrauding shareholders by hiding defects in yoga pants whose sheerness led to a costly product recall, as well as concealing talks that led to the sudden departure of its chief executive, Christine Day. The lawsuit was filed by shareholder Houssam Alkhoury in Manhattan District Court. It names Day and company founder/chairman Dennis Chip Wilson and seeks class-action status for shareholders between March 21, when full-year results were announced, and June 10.