San Diego, CA -- (ReleaseWire) -- 09/04/2013 -- An investor, who currently holds shares Lululemon Athletica inc. (NASDAQ:LULU), filed a lawsuit against directors Lululemon Athletica over alleged breaches of fidcuairy duties in connection with the recall of Sse-through yoga pants.
If you are a current long-term investor in shares of Lululemon Athletica inc. (NASDAQ:LULU), you have certain options and you should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
Lululemon Athletica’s Luon yoga pants, which were shipped on March 1, 2013, were made out of a fabric that was very thin, overly translucent and essentially rendered the pant see-through. The plaintiff says that after weeks of turmoil defendants were forced to formally recall the defective yoga pants and offer customer exchanges or refunds. The plaintiff claims that the recall cost Lululemon Athletica $57 to $67 million in lost revenues. Furthermore, the plaintiff says that following the multi-million dollar recall of the see-through yoga pants, Lululemon Athletica's share price took another hit when Lululemon Athletica’s CEO suddenly resigned.
On June 10, 2013, Lululemon Athletica inc. announced its first quarter fiscal 2013 results. Lululemon Athletica inc. also announced that Christine Day will step down as the Company's Chief Executive Officer when a successor is named.
The plaintiff says that fendant and former CEO Christine McCormick Day assured shareholders that the quality control issues at Lululemon's factories had been addressed and response to defendants' assurances, the price of Lululemon Athletic stock increased to $82.50 per share in intraday trading by June 10, 2013.
However, the plaintiff claims that while the price of Lululemon stock was artificially inflated Lululemon Athletica founder and Chairman of the Board, Dennis J. 'Chip' Wilson , who owned nearly 30 percent of Lululemon Athletica’s stock as of March 2013, cashed in, selling 2 million shares of his personally owned stock on the open market and receiving more than $163 million in gross proceeds during a very short trading window lasting from May 10, 2013 to June 7, 2013.
In adition, the plaintiff says that Lululemon Athletica hid from shareholders that former CEO Christine McCormick Day planned to leave the company until all ballots for the company's June 11, 2013 annual general shareholder meeting were collected.
Shares of Lululemon Athletica inc. declined from $82.28 per share on June 10, 2013 to as low as $59.94 per share on June 21, 2013.
On September 3, 2013, NASDAQ:LULU shares closed at $69.92 per share.
Those who purchased shares of Lululemon Athletica inc. (NASDAQ:LULU), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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