Lululemon Sued For Fraud In Sheer Yoga Pants Scandal

Business Insider

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Lululemon's sheer yoga pants scandal is coming back to haunt the retailer again. 

A shareholder filed a suit in Manhattan Tuesday accusing the company of "defrauding shareholders by hiding defects in yoga pants whose sheerness led to a costly recall, and concealing talks that led to the sudden departure of its chief executive," according to Reuters. 

A separate lawsuit filed in May alleges that Lululemon boosted executive pay just before going public with the recall, Reuters reported. 

The retailer had to recall 17% of its pants in March for being too sheer. Last month, CEO Christine Day announced her departure from the company. 

Lululemon says the debacle could cost the company $40 million in profits. 

The company blamed the defect on a supply chain error. 



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