The company, infamous for its transparency, is now getting sued for not being transparent enough with shareholders about executive decisions. (Nailed it!)
A shareholder is accusing the company of fraud, claiming Lululemon deliberately hid the defects in the pants, which resulted in part from cost-cutting. Lululemon was then forced to sell the pants at a discount to preserve market share. The lawsuit also contends that the company concealed “serious discussions” about then-CEO Christine Day’s exit, resulting in a 17.5 percent drop in markert shares in June, Reuters reports.
Day left the company five-and-a-half months after the see-through yoga pant nightmare, citing “personal reasons.”
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