Retirement fund sues Lululemon over executive pay
A retirement fund for police and firefighters in Florida is suing Lululemon Athletica Inc., taking issue with a decision by Lululemon's compensation committee to boost the maximum payout of the executive bonus plan just before a $60 million recall of yoga pants.
The Hallandale Beach Police Officers and Firefighters' Personnel Retirement Fund filed the lawsuit Friday in the Chancery Court of Delaware.
The fund asserts that the bonus hike represents a breach of the board's obligations to the company and its shareholders, because the board was aware of the problem that led to the recall.
In March, Lululemon pulled its Luon pants from stores because the fabric was too sheer and revealing.
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