NEW YORK, July 3, 2013 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC announces that a securities class action has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased shares of Lululemon Athletica, Inc. ("Lululemon or the Company) (NasdaqGS: LULU), during the period between March 21, 2013 and June 10, 2013, inclusive (the "Class Period").
The complaint charges Lululemon and certain of its officers and directors with violations of Federal Securities Law. 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, these false and misleading statements included, in part, that: (1) 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; (2) 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 (3) there were serious discussions concerning Day's continued employment at the Company and possible replacement. As a results 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 its Chairman, Dennis 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 the Company issued a press release announcing its first quarter financial results and that Day was stepping down as CEO as soon as her replacement could be selected. On this news, shares of Lululemon fell $14.43 or 17.5%.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. September 3, 2013 is the deadline for investors to seek a lead plaintiff appointment. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.