Ryan & Maniskas, LLP Announces Class Action Lawsuit Against lululemon athletica Inc.
WAYNE, Pa., July 12, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/lulu) announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of lululemon athletica, Inc. ("lululemon" or the "Company") (NASDAQ: LULU; TORONTO: LLL) common stock during the period between March 21, 2013 and June 10, 2013 (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/lulu.
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 result 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%.
If you are a member of the class, you may, no later than September 3, 2013, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/lulu or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at firstname.lastname@example.org. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP