$4 million going to help Washingtonians deceived by LuLaRoe

SEATTLE — Attorney General Bob Ferguson announced today that LuLaRoe will pay $4.75 million to resolve Ferguson’s consumer protection lawsuit asserting that LuLaRoe, a California-based multi-level marketing business that sells leggings and other apparel to a network of independent retailers, was operating a pyramid scheme.

In January 2019, Ferguson filed a lawsuit against LuLaRoe and several of its executives, asserting that the defendants made unfair and deceptive misrepresentations regarding the profitability of being an independent retailer for LuLaRoe. For example, one LuLaRoe executive claimed that “so many of our retailers are making amazing money doing this part time” and “a huge number of people” sell $15,000 to $20,000 each month. Later in the same call, she claimed LuLaRoe has “a bunch of people” that can sell up to $150,000 per month. Instead of profiting, many of the company’s independent retailers were left with debt and unsold merchandise they could not return without taking a loss.