Multi-Level Marketing

Published on November 7th, 2017

0

Lawsuits Against LuLaRoe Keep Mounting

Since 2017, LuLaRoe has been hit with multiple lawsuits regarding its business practices. Federal class-action lawsuits allege that LuLaRoe is a pyramid scheme. The Attorney General of Washington filed a lawsuit against LuLaRoe, its founders, and one of its promoters in Washington state court in 2019 alleging that the company is a pyramid scheme. Other class actions filed in federal court allege that the company sells defective leggings, unlawfully charges sales taxes, or engages in deceptive and unfair practices with regard to its return policy. There are so many complaints that it’s hard to keep up.

Below are the cases that TINA.org is currently tracking. For more coverage of LuLaRoe, click here.

Case Name
(Court, Date Filed)
Claim Status
Porsch v. LuLaRoe
(S. D. NY., Oct. 2018)
Issues with Sales Tax Dismissed for lack of subject matter jurisdiction
Hill v. LuLaRoe
(D. MT., Sept. 2018)
Issues with Sales Tax Pending
Van v. LuLaRoe
(D. AK., Sept. 2018)
Issues with Sales Tax Dismissed; Appeal Filed
Rocke v. LuLaRoe
(C. D. CA., Nov. 2017)
Pyramid Scheme Allegations Voluntarily dismissed***
Atkinson v. LuLaRoe
(C. D. CA., Nov. 2017)
Pyramid Scheme Allegations Voluntarily dismissed***
Patton v. LuLaRoe
(C. D. CA., Nov. 2017)
Issues with Return Policy Voluntarily dismissed***
Haskett v. LuLaRoe
(C. D. CA., Oct. 2017)
Pyramid Scheme Allegations Voluntarily dismissed***
Berry v. LuLaRoe
(C. D. CA., October 2017)
Pyramid Scheme Allegations Voluntarily dismissed***
Lemberg v. LuLaRoe
(C. D. CA., Oct. 2017)
Issues with Return Policy and Pyramid Scheme Allegations*** Stayed pending arbitration
Heinichen v. LuLaRoe
(C. D. CA., May 2017)
Defective Leggings Consolidated with similar lawsuits**
Mack v. LuLaRoe
(C. D. CA., May 2017)
Defective Leggings Pending**
Doran v. LuLaRoe
(C. D. CA., Apr. 2017)*
Defective Leggings Consolidated with similar lawsuits**
Goodwin v. LuLaRoe
(C. D. CA., Mar. 2017)*
Defective Leggings Consolidated with similar lawsuits**
Dean v LuLaRoe
(C. D. CA., Mar. 2017)
Defective Leggings Consolidated with similar lawsuits**
Webster v. LuLaRoe
(W. D. PA., Feb. 2017)
Issues with Sales Tax Dismissed
State of Washington v. LuLaRoe
(Wash. State Court, Jan. 2019)
Pyramid Scheme Allegations Pending
Sperring v. LuLaRoe
(C. D. CA., Mar. 2019)
Pyramid Scheme Allegations and Issues with Return Policy Stayed pending arbitration

*Case was originally filed in state court and transferred to federal court

** Five similar lawsuits (Heinichen, Mack, Doran, Goodwin, and Dean) were consolidated and a Consolidated Class Action Complaint was filed. (In Re LuLaRoe, LLC, Leggings Marketing, Sales Practices and Products Liability Litigation, Case No. 17-cv-853, C. D. CA.). See the Mack case in the chart to learn the status of the consolidated action.

*** The named plaintiffs in the Atkinson, Berry, Haskett, Patton, and Rocke cases were added to the Lemberg v. LuLaRoe class action that was amended in January 2018. The Lemberg amended complaint also added pyramid scheme allegations.

Update 8/5/19 – chart was updated.

Print Friendly, PDF & Email

Tags: ,




Leave a Reply

Back to Top ↑