A lawsuit that accused Lululemon of defrauding shareholders by not revealing a product issue with Luon yoga pants has been dismissed, Reuters reports. The case focused on problems that caused Luon yoga pants to become see-through, causing a costly recall in March 2013. An appeals court in Manhattan ruled earlier this month that shareholders led by Louisiana Sheriffs' Pension & Relief Fund failed to prove that Lululemon committed securities fraud by concealing the issues with its black Luon pants, by overstating its quality control or hiding its use of deep discounts to boost market share. The decision upheld a ruling issued in April 2014.

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