|
 U.S. District Judge Katherine Forrest in Manhattan had on April 4
issued "draft" decisions dismissing a shareholder lawsuit against
Lululemon, and two lawsuits accusing 11 executives and directors of
missing red flags about poor quality control.
The judge issued a final, longer ruling dismissing the proposed
shareholder class action on Friday, after having done the same in
the other two lawsuits last week.
Shareholders accused Lululemon of failing to disclose how its black
Luon yoga pants were too sheer, culminating in an expensive March
2013 recall.
They also accused the Vancouver, British Columbia-based company of
overstating its ability to ensure good quality control and of
concealing plans to replace its since departed chief executive,
Christine Day.
But Forrest wrote on Friday that the plaintiffs' "narrative requires
the court to stretch allegations of, at most, corporate
mismanagement into actionable federal securities fraud."
"This is not the law," she added.
The lawsuits had sought damages for an estimated $2 billion decline
in Lululemon's market value. Lululemon has denied wrongdoing.
[to top of second column] |
A lawyer for the plaintiffs and representatives for Lululemon did
not immediately respond to requests for comment.
The cases are in the U.S. District Court, Southern District of New
York. They are In re: Lululemon Securities Litigation, No. 13-04596;
Canty v. Day et al, No. 13-05629; and Federman v. Day et al, No.
13-05977.
(Reporting by Jonathan Stempel in New York;
editing by Jonathan Oatis)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
