LuLaRoe @ BehindMLM

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.

While I’m aware of the common association of cultish tendencies within MLM companies, it’s not something I tend to dwell on. Extreme fans can be found cheering anything on, so I think definitively drawing a line between fanaticism and a cult is pretty difficult. And it’s not made any easier by those inside or who [Continue reading…]

LuLaRoe’s attempts to thwart a victim class-action has devolved into a legal mess. To recap, back in late 2017 LuLaRoe was sued by several former affiliates. The lawsuit claims damages of over $5 million and potentially 80,000 class members. As of April 17th, the case was stayed pending the outcome of compulsory arbitration. Three days [Continue reading…]

Whereas regulation of the MLM sector came mostly to a standstill thanks to Trump’s shutdown, in some corners government employees are still active. One such corner is the Washington state AG’s Office, who are suing LuLaRoe for being a pyramid scheme.

If a recently filed lawsuit by their supplier Providence Industries MyDyer is to be believed, LuLaRoe’s owners are sitting on hundreds of millions of dollars. MyDyer and other suppliers are owed tens of millions, which Mark Stidham has told them he has no intention of paying.

Of the affiliate lawsuits filed against LuLaRoe that are still playing out, the most prominent is a proposed class-action pertaining to the company’s return policy. The six-count complaint claims damages in excess of $5 million and seeks to represent a nationwide class of distributors who either attempted (unsuccessfully) to return inventory or purchased inventory during [Continue reading…]