A class action lawsuit has been filed against the popular women’s clothing company LuLaRoe claiming the company is operating a pyramid scheme. The class action lawsuit states LuLaRoe recruits hopeful employees (many of which who are millennial mothers) to sell its wares from home, but leaves them in “financial ruin.”
The lawsuit states “Consultants were told that they should have at least 10 items in every size in all styles. This was purportedly the ‘magic number’ of inventory.” Plus the lawsuit explains “New consultants are aggressively pressured to continue purchasing wholesale inventory even when the inventory they have is not selling, is unlikely to sell, or is piling up in their garage.”
The lawsuit states that LuLaRoe encouraged women to run up high interest debt in order to purchase leggings, skirts and other clothing products. The lawsuit claims that these woman are left with rooms full of unsold clothing and LuLaRoe is then making most of its money off consultants who are forced to keep an inventory of clothing the company knows they won’t be able to sell.
LuLaRoe calls the suits baseless and inaccurate.
LuLaRoe was founded in 2012 and is known for their brightly colored leggings that can be found all over trendy female Facebook pages.
Any questions in regards to the LuLaRoe Clothing Company Pyramid Scheme Class Action Lawsuit can be directed to:
Joshua H. Watson
ARNOLD LAW FIRM
865 Howe Ave
Sacramento, CA 95825