San Diego, CA -- (SBWIRE) -- 07/03/2013 -- An investor, who purchased Lululemon Athletica inc. (NASDAQ:LULU) shares, filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Lululemon Athletica inc. in connection with certain allegedly false and misleading statements that were made between March 21, 2013 and June 10, 2013
Investors who purchased shares of Lululemon Athletica inc. (NASDAQ:LULU) between March 21, 2013 and June 10, 2013 and / or those who purchased NASDAQ:LULU shares prior to March 2013 and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: September 1, 2013. NASDAQ:LULU investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Lululemon Athletica inc. (NASDAQ:LULU) common stock during the period between March 21, 2013 and June 10, 2013, that Lululemon Athletica inc. and certain of its officers and directors violated the Securities Exchange Act of 1934.
Specifically, the plaintiff claims that defendants allegedly failed to disclose between March 21, 2013 and June 10, 2013 that 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 Athletica’s efforts to cut costs in order to raise profit margins to the detriment of product quality and brand reputation, that Lululemon Athletica was being forced to sell its yoga pants at a discounted price between March 21, 2013 and June 10, 2013to obtain sales and protect market share, and that there were serious discussions concerning the Company’s Chief Executive Officer continued employment at the Lululemon Athletica inc. and Lululemon Athletica inc. was considering replacing the Company’s Chief Executive Officer.
The plaintiff says that as a results of defendants’ positive statements between March 21, 2013 and June 10, 2013, the price of Lululemon Athletica inc. stock increased to $82.50 per share in intraday trading by June 10, 2013, allowing one defendant to sell 2 million shares of his personally owned stock at allegedly artificially inflated prices for proceeds of more than $163 million.
On June 10, 2013, Lululemon Athletica inc. announced its first quarter fiscal 2013 results. Lululemon Athletica inc. also announced that Christine Day will step down as the Company's Chief Executive Officer when a successor is named.
Shares of Lululemon Athletica inc. declined from $82.28 per share on June 10, 2013 to as low as $59.94 per share on June 21, 2013.
On July 2, 2013, NASDAQ:LULU shares closed at $65.05 per share.
Those who purchased shares of Lululemon Athletica inc. (NASDAQ:LULU), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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