Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against lululemon athletica inc.
Tuesday, July 02, 2013
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against lululemon athletica inc.15:28 EDT Tuesday, July 02, 2013
NEW YORK (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/lululemon/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of lululemon athletica inc. (“Lululemon”) (NASDAQ:LULU) common stock during the period between March 21, 2013 and June 10, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/lululemon/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Lululemon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Lululemon was founded by defendant Dennis J. Wilson in 1998 and sells yoga wear that Wilson is credited with inventing, including the Company's most iconic product, the Luon yoga pants. In January 2012, Wilson was forced to step down as Lululemon's Chief Innovation and Brand Officer, turning over those roles to the Company's Chief Executive Officer, Christine McCormick Day.
The complaint alleges that during the Class Period, defendants made false and misleading statements regarding the Company's products and future business prospects. Specifically, according to the complaint, defendants failed to disclose the following adverse facts during the Class Period: (a) the quality defects in the Luon yoga pants, which were shipped on March 1, 2013 in a fabric that was very thin, overly translucent and essentially rendered the pant see-through, resulted in part from Lululemon's efforts to cut costs in order to raise profit margins to the detriment of product quality and brand reputation; (b) Lululemon was being forced to sell its yoga pants at a discounted price during the Class Period to obtain sales and protect market share; and (c) there were serious discussions concerning defendant Day's continued employment at the Company and the Company was considering replacing defendant Day. As a results of defendants' positive Class Period statements, the price of Lululemon stock increased to $82.50 per share in intraday trading by June 10, 2013, allowing defendant Wilson to sell 2 million shares of his personally owned stock at artificially inflated prices for proceeds of more than $163 million.
Then, on June 10, 2013, after the close of trading, Lululemon issued a press release announcing its first quarter financial results and that defendant Day was stepping down as CEO as soon as her replacement could be selected. Defendants also stated that Lululemon had resorted to price discounting during the Class Period. The Company's stock price plummeted on this news, closing down $14.43 per share, or more than 17.5%.
Plaintiff seeks to recover damages on behalf of all purchasers of Lululemon common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld