LuLaRoe @ BehindMLM

Dot Dot Smile has filed its Chapter 11 Plan. The December 2nd filing provides insight into how and why Dot Dot Smile collapsed.

Twoand a half months after it canned its MLM opportunity and went wholesale, Dot Dot Smile has filed for bankruptcy. Dot Dot Smile initiated Chapter 11 proceedings in California on September 3rd.

The Ponkey LuLaRoe class-action, the second filed in California, has been dismissed through arbitration. The case isn’t over just yet though.

Dot Dot Smile has informed distributors its MLM opportunity “no longer makes sense for us to maintain as a sustainable business.” The announcement was made last Friday, giving notice Dot Dot Smile will cease MLM operations on June 30th.

Last September mediation proceedings were ordered in the proposed LuLaRoe class-action in California. Since then, one by one, LuLaRoe has been reaching confidential settlements with the Plaintiffs. As of May 2021 there were still three Plaintiffs standing. On July 1st three joint stipulations were filed, requesting dismissal of their respective cases and claims.

A second pyramid scheme class-action has been filed against LuLaRoe. Plaintiff Jessica Ponkey filed suit against LuLaRoe in California on March 24th, 2021.

Two years ago the Washington State AG filed a lawsuit against LuLaRoe. In the lawsuit the AG’s Office alleged LuLaRoe was an “unlawful pyramid scheme”. Rather than prove it’s not a pyramid scheme, LuLaRoe has settled the lawsuit for $4.75 million dollars.

A Status Report has revealed there are only six remaining LuLaRoe class-action Plaintiffs who haven’t resolved their claims through settlement.

An investigation by the Pennsylvania Attorney General has found LuLaRoe’s Buy Back Policy to be “unfair and deceptive”. The AG alleges LuLaRoe’s business practices are in violation of Pennsylvania Consumer Protection Law.

LuLaRoe has announced an early gift to its one hundred and sixty-seven Californian warehouse staff: They’re all going to be fired five days before Christmas.