Lululemon Hit With Shareholder Lawsuit Over Activewear Trends

A Lululemon Athletica Inc. shareholder has sued the apparel company, accusing executives of misleading investors about product execution issues and slowing activewear trends.

The lawsuit cites a Bloomberg News report in July that Lululemon paused sales of its Breezethrough yogawear. The decision was part of a string of challenges at Lululemon, whose legging business was hurt by a lack of new colors and unavailability of certain sizes.

Given the challenges, executives’ positive statements about the company’s business, operations, and prospects were materially misleading, investors said in a complaint filed Thursday in the US District Court for the Southern District of ...