Shareholders of LULU stock affected by recent lost market value.
Lululemon Athletica (LULU)
Stock drop occurred between June 10 and June 12, 2013
In June 2013, during two trading days, Lululemon Athletica shareholders lost a reported $2.6 billion in market value. Now, a class action lawsuit alleges that this was the result of a misrepresentation by senior executives of the company. Shareholders who were affected by this drop may be able to take part in a proposed class action lawsuit.
According to a securities fraud class action lawsuit, artificially inflated prices brought about by misrepresentation of the business’ true outlook led to the sudden crash between June 10 and June 12. It’s also been alleged that a former CEO sold two million shares during the class period at near highs, making a multi-million dollar profit from the sale.
The misrepresentations listed in the lawsuit include that executives knew about defects in yoga pants that were nevertheless shipped for sale, and that the board of directors was in discussions about replacing a company CEO.