Categories: RetailU.S. Investing

Investors Stretched to the Breaking Point

Investors Stretched to the Breaking Point (CNBC)

Shareholders in Lululemon Athtletica (LLL) have seen enough, literally and figuratively. A group of investors has banded together to sue the apparel company for securities fraud, claiming the company knowingly made its yoga pants too thin, despite their denials. Because its pants are so sheer, they become almost transparent when stretched. That’s made sales fall off a cliff, taking share price with it. And Lululemon investors aren’t standing for it any more. If you’re currently holding onto the company’s shares, you might want to consider selling before it gets really ugly — unless you want to join the fray.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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