$1 Billion Lawsuit Accuses LuLaRoe Of Being Pyramid Scheme

CORONA, Calif. (CBS13/AP) – A California clothing company has been hit with lawsuits claiming it recruited women to sell its goods from home and left thousands of them with unreturnable merchandise.

A federal class-action suit filed Monday seeks at least $1 billion in damages from LuLaRoe, which had $2 billion in sales this year.

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.

The suit says the company lured people into a pyramid scheme and says as many as 80,000 people paid thousands up front for inventory.

Another suit takes aim at changes in the company’s refund policy for its sellers.

LuLaRoe calls the suits baseless and inaccurate.

 

Copyright 2017 The Associated Press.

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