Lululemon sued in securities fraud class action

Posted on: August 20th, 2013 by Steve Larson

Stocks and sharesA class action lawsuit has been filed on behalf of investors who purchased Lululemon Athletica (NASDAQ: LULU) common stock between March 21, 2013 and June 10, 2013. The complaint alleges that a series of statements made during that time regarding Lululemon’s business, operations and prospects were false and misleading. Specifically, the complaint alleges that Lululemon misrepresented and failed to adequately disclose: (a) The Luon quality defects resulted in part from Lululemon’s efforts to cut costs to raise profit margins to the detriment of product quality and brand reputation; (b) Lululemon was being forced to sell yoga pants at a discounted price during the Class Period to obtain sales and protect market share; and (c) there were serious discussions concerning Defendant Day’s continued employment at the Company and the Company was considering replacing Defendant Day.

If you purchased LULU common stock between March 21, 2013 and June 10, 2013 you have the legal right to petition the Court to be appointed a “lead plaintiff.” A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made no later than September 3, 2013. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.