The class action suit claims LuLaRoe is pyramid scheme. The suit says as many as 80,000 people paid thousands up front for inventory. The suit says the Corona firm encouraged women who wanted to sell its leggings, skirts and other clothing to take out loans, run up credit cards and even sell their breast milk, then left some in financial ruin with unsold goods.
Another suit takes aim at changes in LuLaRoe’s refund policy for its sellers, saying it presented challenges for sellers who wanted to leave the company and return inventory.
You can check out the LuLaRoe Pyramid Scheme Lawsuit Documents here