Wilmington, DE – Lululemon is still in trouble over their
transparent yoga pants, and the company now faces a lawsuit over an apparent decision to boost executive pay shortly before the pricey recall of their controversial leggings.
The New York Post reports that a Florida retirement fund for police and firefighters has filed a lawsuit against Lululemon Athletica Inc. over the company’s decision to boost the maximum payout of the executive bonus plan just prior to the $60 million recall of
transparent yoga pants.
The Hallandale Beach Police Officers and Firefighters’ Personnel Retirement Fund (boy, what a mouthful) filed their lawsuit on Friday. They allege that the bonus increase is a breach of the company’s obligations to shareholders and argue that the board was aware of the sheer fabric problem that led to the recall.
Lululemon pulled its Luon line of yoga pants from stores in mid-March after the company had discovered that the fabric was a bit to
Almost immediately after the controversial pants were pulled, Lululemon blamed the Eclat Textile Company, who manufacture the pants. Eclat responded to the charge, saying that every batch of Yoga pants is made the exact same way, and that the recalled group was up to the specifications agreed upon in their contract.
An Atlantic Wire report at the time pointed out that Lululemon’s recall constituted the fourth quality control issue in the last year.
So were Lululemon executives bracing for controversy and bailing themselves out before the ship went down? That’s something you’ll have to decide for yourself.
Did you purchase a pair of
transparent botched Lululemon yoga pants?
[Image via: Lululemon / Wikimedia Commons]