Lululemon’s sheer yoga pants scandal is coming back to haunt the retailer again.
A shareholder filed a suit in Manhattan Tuesday accusing the company of “defrauding shareholders by hiding defects in yoga pants whose sheerness led to a costly recall, and concealing talks that led to the sudden departure of its chief executive,” according to Reuters.
A separate lawsuit filed in May alleges that Lululemon boosted executive pay just before going public with the recall, Reuters reported.
Lululemon says the debacle could cost the company $40 million in profits.
The company blamed the defect on a supply chain error.
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