Lululemon Sued For Fraud Over See-Through Yoga Pants
1:45 pm, July 3rd | by Grace Rasmus
It has been a rough year for Lululemon, the yoga pant company of choice for women who feel like dropping a few Franklins on some leg fabric. 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.” Lululemon is currently looking for a new CEO and has posted (seemingly fake) want ads online. One ad on their website (which has since been removed) read: “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.”
Due to the decline in pant quality, it seems as though Lululemon has lost a big portion of their cult-like following. Their Facebook CEO advertisement asking “Any ideas?” has received hundreds of negative comments. The complaints range from price (“I am so sick of pilly $100 pants”) to increasingly poor quality (“I’d rather wear my Lulu pants that are ten years old than buy the new, low quality ones nowadays”) to overseas production (“Invest more money in locally made goods which would also create more jobs in Canada. Bring back local production and less production overseas”) to the pants’ small sizes (“Not everyone has a runners body but we would all love to be able to wear your clothes. I like to look great too when I work out”).