Lularoe Hit With $1 Billion Class-Action Lawsuit
The suit alleges that the company encouraged women to max their credit cards to buy products.
A 27-page lawsuit, on behalf of a few Sacramento women and all LLR consultants from 2013 until now, is seeking $1 billion in damages from the leggings giant. The company made $2 billion last year alone.
The suit claims that the company is a pyramid scheme, and told sellers to max their credit cards and sell their breast milk to buy more product. The suit alleges that 80,000 sellers paid up front for their products.
This comes after Lularoe was under fire for its return policy, saying that sellers would receive only 90% of their refund for the unsold products that were shipped back instead of 100%.
Are people really that gullible nowadays? A company encourages you to max your credit cards to sell THEIR product, you do it, and now you're mad? Maybe it's because I'm a guy, but I don't understand.