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SHABBOUEI EX REL. LULULEMON ATHLETICA INC. v. POTDEVIN

C.A. No. 2018-0847-JRS.

DAVID SHABBOUEI, Derivatively on Behalf of LULULEMON ATHLETICA INC., Plaintiff, v. LAURENT POTDEVIN, GLENN MURPHY, MARTHA A.M. MORFITT, DAVID M. MUSSAFER, STUART HASELDEN, MICHAEL CASEY, EMILY WHITE, ROBERT BENSOUSSAN, KATHRYN HENRY, JON MCNEILL, TRICIA PATRICK, and STEVEN J. COLLINS, Defendants, LULULEMON ATHLETICA INC., a Delaware Corporation, Nominal Defendant.

Court of Chancery of Delaware.

Date Decided: April 2, 2020.

Attorney(s) appearing for the Case

Blake A. Bennett , Esquire of Cooch and Taylor, P.A., Wilmington, Delaware and Brian J. Robbins , Esquire Stephen J. Oddo Esquire, and Steven R. Wedeking , Esquire of Robbins Arroyo LLP, San Diego, California, Attorneys for Plaintiff David Shabbouei. Bradley R. Aronstam , Esquire and Roger S. Stronach , Esquire of Ross Aronstam & Moritz LLP, Wilmington, Delaware and Joseph S. Allerhand , Esquire Stephen A. Radin Esquire , and Thomas G. James , Esquire of Weil, Gotshal & Manges LLP, New York, New York, Attorneys for Defendants Laurent Potdevin , Glenn Murphy , Martha A.M. Morfitt , David M. Mussafer , Stuart Haselden , Michael Casey , Emily White , Robert Bensoussan , Kathryn Henry , Jon McNeill , Tricia Patrick , and Steven J. Collins and Nominal Defendant lululemon athletica inc..

MEMORANDUM OPINION

After verifying reports that its CEO had engaged in pervasive misconduct, the board of directors (the "Board") of lululemon athletica inc. ("lululemon" or the "Company") elected to pursue a negotiated separation of his employment rather than a termination for cause. The Board made this judgment...

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