Overview
In an opinion filed on Friday, Judge Forrest dismissed a derivative suit brought by shareholders in yoga apparel company Lululemon. The complaint centered on the March 2013 recall of one of Lululemon's "flagship" products -- black yoga pants that turned out to be sheer when worn. Judge Forrest ruled that the plaintiffs had not adequaetly pled demand excuse for failing to bring the claim to the company's board, who the plaintiffs said were not disinterested. Judge Forrest has not yet ruled on the pending motion to dismiss the related putative securities fraud class action, which we covered previously. In addition, as in a previous case, Judge Forrest provided the parties with a draft of her opinion a few hours before a scheduled court conference. In her order announcing issuance of the draft opinion, Judge Forrest told the parties:
The Court will listen to any argument the parties would like to make as to the Court’s tentative rulings, or proposals as to next steps. For instance, if there is a total dismissal, the plaintiffs should be prepared to address whether they will seek an opportunity to amend and if so, what facts they would propose to add. If the Court does not dismiss in whole or in part, then the parties should be prepared to address the timing of motions for class certification and discovery.