Lululemon (LULU) may be eager to put its see-through yoga pants kerfuffle behind it, but shareholders who lost money as a result of the scandal aren't so eager to forgive and forget.
Reuters reports that a shareholders lawsuit filed today in the US District court in Manhattan accuses Lululemon of hiding defects in its yoga pants that ultimately resulted in a recall and an embarrassing string of headlines. A line of black yoga pants using the company proprietary Luon material was found to be too sheer, making the pants partially see-through in certain conditions.
The product recall is widely seen as a contributing factor in the departure of Christine Day, the long-time CEO who presided over a period of incredible growth for the athletic apparel retailer. The announcement of Day's ouster has tanked the share price more than the see-through pants ever did, and the lawsuit further charges the retailer of concealing talks of her imminent departure.
The lawsuit was filed by Massachusetts resident Houssam Alkhoury, a Massachusetts resident who bought 7,500 shares of the company. Those shares would have lost more than $100,000 in value immediately following Day's announcement that she would be leaving the company.
Matt Brownell is the consumer and retail reporter for DailyFinance. You can reach him at Matt.Brownell@teamaol.com, and follow him on Twitter at @Brownellorama.