Lululemon shares drop as Texas AG opens investigation into co

Investing.com -- Lululemon USA Inc.shares dropped more than 3% on Monday after Texas Attorney General Ken Paxton announced an investigation into whether the company has misled consumers about product safety and health impacts.

Paxton issued a Civil Investigative Demand to the activewear company as part of a probe examining potential misrepresentation regarding the safety, quality, and health effects of its products.

The investigation will focus on whether Lululemon's athletic apparel contains PFAS or "forever chemicals" that health-conscious customers would not expect based on the brand's marketing, according to the Attorney General's statement. PFAS have been associated with endocrine disruption, infertility, cancer, and other health issues.

The Attorney General's office will review the company's Restricted Substances List, testing protocols, and supply chain practices to determine whether Lululemon's products comply with its stated safety standards.

Lululemon generated over $11 billion in fiscal year 2025 and markets itself as a wellness-focused lifestyle brand emphasizing sustainability and performance.

"Americans should not have to worry if they are being deceived when trying to make healthy choices for themselves and their families," Paxton said. "I will not allow any corporation to sell harmful, toxic materials to consumers at a premium price under the guise of wellness and sustainability."

You May Also Be Interested In

• SK Hynix said to price US listing at $149 per ADR
• RBC Capital Downgrades Wizz Air Holdings (WIZZ:LN) (WZZAF) to Underperform
• JPMorgan Double Upgrades Salzgitter AG (SZG:GR) (SZGPY) to Overweight