Lululemon, Ross Settle Suit Alleging $128 Leggings Sold for $8

Lululemon Athletica Canada Inc. settled its claims in California alleging that Ross Stores Inc. sold thousands of far-inferior counterfeit leggings at its “DD’s Discount” stores for a fraction of what the real products were worth.

A San Francisco federal court signed off Monday on the parties’ stipulation to dismiss the case subject to a confidential settlement agreement.

Lululemon’s lawsuit had accused Ross and its supplier IOPA Inc. of infringing and counterfeiting Lululemon’s trademarks and violating unfair competition laws.

According to the complaint, the leggings at issue are sold for $128 at Lululemon’s high-end athletic apparel stores, and Ross had been ...