lululemon Prevails in Lawsuits Over Yoga Pants Recall

A lawsuit accusing lululemon athletica of defrauding shareholders by hiding defects in some yoga pants that led to a costly recall and caused the retailer's stock price to fall should be dismissed, a U.S. judge said. Investors accused lululemon of failing to disclose how its black Luon yoga pants were too sheer, falsely touting its quality control, covering up an inability to address shortfalls, using deep discounts to boost market share, and concealing plans to replace its then-chief executive, Christine Day. The case arose after shoppers found that pants containing lululemon's proprietary Luon fabric were see-through when worn.