Have you been keeping track? So far, the LuLaRoe Lawsuits are at thirteen and counting….all of them can been seen here. That link includes all the lawsuits that have been flied along with links to the actual court documents.
The latest in the LuLaRoe lawsuits is a BIG step forward for retailers. This isn’t about copyright infringement, sales tax, defective leggings or from it’s previous credit card processor; THIS is about LuLaRoe being a pyramid scheme and rescinding the 100% buyback policy.
The lawsuit’s primary accusation is that LuLaRoe rescinded its buyback policy after it led consultants— including the named plaintiffs: Stella Lemberg, Jeni Laurence, Amandra Bluder, and Carissa Stuckart— to believe they could continue to buy clothing risk-free, given the 100 percent buyback guarantee. You can see the actual filing here along with all the other court filings here.
While I wish ill on no one, but LuLaRoe is getting its just desserts. For all the reasons I’ve mentioned in this blog and more, LuLaRoe deserves to finally be forced to take responsibility for their nefarious and criminal actions. They have forced retailers into bankruptcy, mentors have paid people to join their teams (considered “blessing lives”, but highly unethical). Let’s not forget breeding and encouraging “mean girls“, and not paying out approved fundraisers. I am not in the least bit disheartened that they are seeing their own demise.
But here’s the biggest caveat in this whole situation; LuLaRoe will not and does not see that they have done one thing wrong, or if they have, they will never admit it. EVER. Just keep drinking the Kool-Aid, “buy more to sell more” and “stay in your own lane” (translation: keep the blinders on and don’t look for and realize the truth).
One thing though – I hope that they stay liquid long enough to pay the retailers that are waiting on refunds, including me. I’m owed a HUGE chunk of change from them and do not need the aggravated hassle of having to take the legal route to get my money. Even though I have attorneys on board right now, ready and willing, I do not need that added stress nor does anyone else. Pay out your DAMN refunds and the owed fundraisers.
Tick tock, motherfuckers.
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In the not too distant future, LLR will announce that they are insolvent, ceasing operations & filing for bankruptcy at 4:59pm PST, on a Friday. Whatever consultants are left will be high & dry, with clothing they cannot sell & won’t get their money back for either. With this latest lawsuit against them, filed by former LLR consultants, it is going to be enough to instill fear into the people waiting in the queue & they’re going to pull out, consultants are going to quit because they want their money back & LLR will be losing money hand over fist. Mentors & higher level consultants are quitting, so that tells you something. They’re afraid of going into financial ruin. They see what’s going on & they are getting out before the giant sinkhole that LLR is sitting on collapses. I think what’s happening now is those who are in the queue are getting the returned merchandise from consultants that are quitting, that they couldn’t sell. So, new consultants are being stuck with old inventory that former consultants couldn’t move. LLR is very concerned with what a certain blogger is putting out there, all of it 100% true & based on testimony from current & former consultants. LLR doesn’t want the truth out there. LLR doesn’t want the truth told from the mouths of consultants that had to file for bankruptcy because they couldn’t sell their merchandise. They want people to believe that all of the consultants are pulling in money hand over fist. They want people to believe that consultants are making tons of money, only working 20 hours per week. They want people to believe that their merchandise is so desirable that people are killing each other to have it. LLR’s “business plan” from day one was deceitful—distribute quality clothing, made in the USA, in patterns that were desirable (aka “unicorns”) and only bring on a handful of consultants to increase the demand. Spread the “culture” of “We support you, we care about you” and direct it toward women that “need” more in their lives—-more self esteem, more love, more friendship, etc. Make those women feel like they are being productive members of society (even though they aren’t selling or making any profit & are going into financial ruin) so that they continue to disseminate the LLR “culture” to keep them involved & spending money. When word spread about LLR enough to create high demand for their products, start outsourcing production to overseas sweat shops so LLR pays less “wholesale” costs (but don’t reduce the cost to consultants or for re-sale) and take on a boat load of consultants to get their initial investments of $5,000+ (usually more than that), change the policies without notice to financially benefit LLR without giving consideration to the financial needs to consultants, encourage women to take out 0% interest credit cards, take loans from their families, and beg, borrow & steal to get the money for their initial inventory, promising that they’ll make up that initial investment in a month or two. When consultants are having difficulty selling their clothing, blame it on them instead of accepting accountability for oversaturating the market with consultants, outsourcing the manufacturing of the clothing which caused the quality of the merchandise to go way down, telling consultants to try to sell defective merchandise by learning how to sew & repair the defects on brand new items of clothing instead of sending them back for a replacement, changing policies without notice, re-circulating returned merchandise to other consultants (when they couldn’t get sold in the first place), failing to provide support to consultants when they couldn’t sell their stuff—-the list goes on and on and on. There is too much bad press about LLR out there—-consultants are quitting so they can get their money back & people are not signing up to be consultants because the LLR is not on firm ground. Losing those initial investments of over $5,000 per consultant is going to hit LLR hard & heavy, especially in light of the lawsuits they are facing. This new one, filed by former consultants, might just be the nail in the coffin.
What has me baffled is the constant charade that they are putting up by launching new styles AND going into shoes and jeans. Have they lost their ever-lovin’ minds? Don’t answer that……..
You know a company is going down when they “release” new styles or capsules more often than the costumers can keep up with. I for one see LLR sinking and sinking faster than ever. Consultant? Sell all you can and run!!! Once LLR falls you might just fall with it.
I completely agree. Holiday capsule was released yesterday and this is the EARLIEST it’s EVER been released. The need liquid funds and are releasing capsules earlier and earlier. They are sinking FAST!