WASHINGTON (dpa-AFX) - California-based clothing company LuLaRoe is reportedly being sued for at least $1 billion in damages for allegedly being a pyramid scheme.
The lawsuit, which was filed on October 23 by California residents Aki Berry, Tiffany Scheffer and Cheryl Hayton on behalf of all LuLaRoe consultants, alleges LuLaRoe of being an illegal pyramid scheme and of violating a federal racketeering law.
The complainants claim that LuLaRoe deceived people by promising full-time pay for part-time work if they joined as a non-employee.
'Once consultants signed up, they were pressured to invest and reinvest by purchasing Defendants' clothing products -- regardless of whether they were able to sell their inventory,' the complaint says 'Plaintiffs were inundated with the slogan 'buy more sell more' and were told they would recoup their investments through retail sales and recruitment.'
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