NEW YORK, April 18 (UPI) -- U.S. District Court Judge Katherine Forrest on Friday dismissed shareholder class action lawsuits against yoga pants-maker Lululemon Athletica.
Shareholders accused the athletic clothing company of fraud for allegedly concealing defects in the quality of yoga pants. Lululemon and some of its current and former executives and directors were accused of violating the Securities Exchange Act and state law due to "serious quality control problems."
The company had to recall its yoga pants after a supplier mistake left the pants too sheer.
Shareholders filed the lawsuit saying investors lost about $2 billion after the recall.
The plaintiff's allegations required the court "to stretch allegations of, at most, corporate mismanagement into actionable federal securities fraud," Forrest wrote in her judgement. "This is not the law."
[Wall Street Journal]