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Lululemon Shares Rise After Company Sues Costco Over Alleged Counterfeit Products

 Shares of Lululemon Athletica Inc (NASDAQ:LULU) rose 2.5% following news that the premium athletic apparel manufacturer had filed a lawsuit against Costco Wholesale Corporation (NASDAQ:COST) for allegedly selling knockoff versions of its signature products.

The lawsuit alleges that Costco sold unofficial "duplicates" of popular Lululemon items, including SCUBA hoodies, DEFINE jackets, and ABC pants under its Kirkland brand. Lululemon argues that these counterfeit products could confuse consumers and damage its reputation for high-quality, innovative athletic apparel.

This legal action comes amid a growing trend of "Lululemon knockoffs" on social media, which the company claims Costco is capitalizing on without clearly distinguishing its products from authentic Lululemon items. The athletic apparel manufacturer asserts that Costco's lower-priced alternatives fail to meet its quality standards.

In the lawsuit, Lululemon sought to stop Costco from selling the alleged counterfeit goods, obtain monetary damages for harm to its brand, and secure an acknowledgment that Costco's actions had misled customers and damaged Lululemon's reputation.

The company asserts its legal rights through trademarks, trade dress protection, and patents covering its distinctive product designs. Investors appear to be responding positively to Lululemon's aggressive defense of its intellectual property and brand position in the competitive athletic apparel market.

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