Lululemon Sued Over See-Through Yoga Pants

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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.
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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, and follow him on Twitter at @Brownellorama.
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