Shareholder Sues Lululemon Over See-Through Pants

Says company defrauded shareholders by hiding what they were not hiding
By Ruth Brown,  Newser Staff
Posted Jul 3, 2013 6:49 AM CDT
Shareholder Sues Lululemon Over See-Through Pants
A woman walks past a Lululemon Athletica store in New York.   (AP Photo/Mary Altaffer, File)

They're the see-through yoga pants that will not disappear. After the famously sheer pants saw Lululemon's chief product officer fired, CEO resign, and stock price plummet, they have now incited a lawsuit. A shareholder is accusing the company of fraud, claiming Lululemon deliberately hid the defects in the pants, and concealed "serious discussions" about then-CEO Christine Day's exit, thus causing shares to drop 17.5 % in June, Reuters reports.

Meanwhile, the company is in search of a new CEO. "Any ideas?" Lululemon wrote on its Facebook page. In a "fake" job advertisement on its site (which now appears to have been removed), it described the position thusly: "You report to no one, you are the CEO (duh). You are passionate about doing chief executive officer type stuff like making decisions, having a vision and being the head boss person." Though the post was a joke, it nevertheless garnered at least 160 responses, the Boston Globe reports. (More Lululemon Athletica stories.)

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