Lululemon alleges that Costco has stolen the intellectual property of its Scuba hoodies and sweatshirts, Define jackets and ABC pants.

Because of this, Lululemon claims this leads at least some shoppers to believe that Kirkland-branded products are made by the authentic supplier of the "original" products. Lululemon claims Costco doesn't try to dispel the ambiguity.

Lululemon accuses Costco of making duplicates of several products, including its popular Scuba hoodies, Define jackets and ABC pants. Lululemon says one of the duplicates that Costco sells is the Hi-Tec Men’s Scuba Full Zip, with the lawsuit showing a screenshot image of Costco’s website showing the item priced at $19.97.