High-flying apparel retailer Lululemon Athletica (NASDAQ: LULU) is coming under scrutiny of late. First, the New York Times reported on questionable products claims, and then Herb Greenberg took a hard look at CEO Bob Meers' resume claims, warning that "If you haven't guessed, this company is now firmly on my radar."

Brenda Buow of the Globe and Mail takes a look at the company: its rapid growth, unique products, and unique corporate culture that incorporates New Age concepts like the Law of Attraction. The main challenge for Lululemon seems to be converting its huge success in Canada into the U.S. market -- a move that many companies have failed at.

To be sure, there's a lot to like about Lululemon; the clothing is wildly popular and the company appears to be carving out a strong niche.

But what about the bear arguments? Many Lululemon shareholders have dismissed the red flags Herb Greenberg has raise about resumes as immaterial. And they're absolutely right: Whether Meers left Reebok in 1998 or 1999 will have no effect on Lululemon's future growth.

But with a fast-growth company, management integrity is of paramount importance -- material importance. There appear to be good reasons to doubt Meers' integrity, and his apparent deflection of Greenberg's questions is another red flag.

Lululemon and the definition of material originally appeared on BloggingStocks on Sun, 02 Dec 2007 15:10:00 EST. Please see our terms for use of feeds.