Pyramid Class Action Suit Filed Against LuLaRoe

rack of clothingThe Arnold Law Firm has filed a nationwide class action law suit against clothing company LuLaRoe on behalf of anyone who has been a LuLaRoe consultant within the past four years.

LuLaRoe has been established as a fast-growing, multi-level clothing marketing company. It claims to “provide an opportunity for people to create freedom by selling comfortable, affordable, stylish LuLaRoe clothing.”

This suit alleges that LuLaRoe operated an “endless chain scheme,” where people are recruited into a business for the purpose of recruiting others. The focus is on getting more participants to join the scheme instead of selling products to actual customers. This kind of organization is unlawful, because it is destined to collapse at the expense of the newer recruits.

According to the Complaint, 80,000 reported consultants each spent $5,000 on a starter kit as a requirement to sell for LuLaRoe. Consultants were then encouraged to continue to purchase additional inventory, regardless of sales to actual customers. LuLaRoe is estimated to have obtained one billion dollars through this scheme.

Read the full Complaint here.

As the lawyers who have filed this class action, we invite current and former LuLaRoe consultants to come forward and share their stories with us. Many have already done so, and we are helping them find restitution. The more people who come forward, the more leverage we have to recoup everyone’s losses.

If you are a current or former LuLaRoe consultant between 2014 and 2017, we want to hear from you. Please call (916) 777-7777 or complete our case evaluation form. There is no cost or obligation.

Arnold Law Firm - trusted Sacramento personal injury lawyers since 1988.