Dive Summary:

• Embattled athletic wear company Lululemon Athletica says a lawsuit alleging that the company knowingly sold defective yoga pants should be thrown out.
• Shareholders for the company are accusing Lululemon of intentionally hiding the defect which affected hundreds of thousands of yoga pants.
• Lululemon says it disclosed its attempt to recall the yoga pants affected by the sheerness in real time.

Dive Insight:

Lululemon disputes the claim that the company hoped the defect would remain undiscovered by consumers. The company has struggled to regain a favorable public image following the widely-publicized sheer-pants debacle and subsequent fallout earlier this year.