Texas AG Probes Lululemon Over PFAS; Shares Drop

for the alleged presence of "forever chemicals" (PFAS) in its apparel, causing Lululemon shares to drop as much as 4.5% in New York trading Monday. Paxton's office stated the probe will examine whether Lululemon's athletic apparel contains PFAS, which health-conscious customers would not expect based on the brand's marketing.

Polyfluoroalkyl chemicals, known as PFAS, are used in hundreds of products for their slippery, non-stick, or stain-resistant properties and have been linked to health problems like cancer and poor immune health in studies. Lululemon previously aimed to limit PFAS use, as indicated in a 2024 document.

This investigation adds to Lululemon's existing challenges, which include tapering sales growth, resurfacing quality issues, and a founder advocating for a board overhaul, all while the company searches for a permanent chief executive officer. Paxton is also suing Chinese fast-fashion company Shein for similar PFAS claims and has initiated other health-related investigations under the "Make America Healthy Again" agenda, targeting companies like WK Kellogg Co.

and Procter & Gamble Co.