Today, Judge Forrest dismissed a putative securities fraud class action against yoga apparel company Lululemon and, as has come to be a regular practice, provided a draft of the opinion to counsel before issuing the final order. As she did last week, Judge Forrest provided the draft the morning before a scheduled court conference and invited comment from the parties. Unlike past instances, the final order on Lululemon’s motion to dismiss differs somewhat substantially from the draft order. Notably, the draft order ran to 39 pages, while the final opinion is 54 pages long. A comparison of the draft and final opinions does not reveal whether most of the changes were the result of input from counsel or were simply revisions made by the Court.
Continue Reading Another Dismissal — and Draft Opinion — by Judge Forrest in Lululemon Case
13 Civ. 04596
Judge Forrest Again Provides Parties Advance Draft in Dismissing Lululemon Derivative Suit
By Matthew Popowsky on
In an opinion filed on Friday, Judge Forrest dismissed a derivative suit brought by shareholders in yoga apparel company Lululemon. The complaint centered on the March 2013 recall of one of Lululemon’s “flagship” products — black yoga pants that turned out to be sheer when worn. Judge Forrest ruled that the plaintiffs had not adequaetly…
Lululemon Calls “See-Through” Yoga Pants a “Painful Misstep,” Not Fraud
By Matthew Popowsky on
In a motion filed on Wednesday, “yoga-inspired athletic apparel company” Lululemon asked Judge Forrest to dismiss a securities fraud claim brought against the company and its CEO. In the complaint, a putative class of Lululemon shareholders alleged that the company hid internal turmoil and quality control issues that had led to a recall of…