Lululemon rejects U.S. lawsuit’s allegation that it misled shareholders

Athletic apparel retailer denies defraud allegations, says the lawsuit should be thrown out of court

Yoga-inspired athletic apparel company Lululemon Athletica Inc. says its year-long battle with bad publicity linked to slowing growth and a messy product recall did not reflect intent to defraud shareholders.

In a filing in the U.S. District Court in Manhattan, the Canadian retailer said it quickly addressed quality control problems, and updated investors in about the impact. It admits that comments by founder and Chairman Dennis "Chip" Wilson that some women's body shapes "just actually don't work" with Lululemon yoga pants created negative company press.

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Amanda Ciccatelli

Amanda G. Ciccatelli is a Contributing Writer for InsideCounsel, where she covers the patent litigation space. Amanda earned a B.A. in Communications and Journalism from...

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