Lululemon Athletica Inc. has been sued by a shareholder demanding records about the yoga wear maker’s decision to increase executive bonuses just before it recalled shipments of women’s pants for being too sheer.
Even though the recall may cost the company $60 million, Vancouver-based Lululemon’s directors boosted the potential payout under an executive bonus program by a third, according to a complaint filed by the Hallandale Beach Police Officers and Firefighters’ Personnel Retirement Fund.
Lululemon has been investigating how the flawed pants, which become too sheer when wearers bend over, got past its testing procedures. The recall of the black Luon garment, which accounted for about 17 percent of all the women’s pants the company sells, caused Lululemon to forecast a profit this year that was less than analysts estimated, sending shares to their biggest drop in two months.
CBOE Holdings Inc., which recently purchased the Kansas City Board of Trade, reported a first-quarter profit that beat analyst projections amid growth in its volatility and Standard & Poor’s 500 index products.
Net income increased 27 percent to $41.8 million, the Chicago-based company said.
The Kansas City Board of Trade was the world’s largest market for trading hard red winter wheat futures contracts.
| Star news services