Lululemon Sued Over Diversity Program, Launch of Leggings Line

Lululemon Athletica Inc. and it officers are facing a shareholder suit in federal court alleging that the company’s failure to adopt a workable diversity program and to timely launch a new line of leggings caused its stock price to plummet.

Shareholder James Wong alleges in a complaint filed Monday in the US District Court for the Southern District of New York that Lululemon announced in 2020 that it adopted a program called “Inclusion, Diversity, Equity, and Action” that would reflect the diversity of the communities it served. The program wasn’t structured to be successful and company employees continued to face ...