Marketing Company LuLaRoe Settles Lawsuit Claiming They Were Running a Pyramid Scheme for $4.75M
The embattled multilevel marketing company LuLaRoe has agreed to pay $4.75 million to settle a lawsuit filed by the state of Washington, which accused the company of engaging in a pyramid scheme.
The state Attorney General Bob Ferguson announced the settlement in a press release on Monday night, about two weeks before the lawsuit had been scheduled to go to trial against the multilevel marketing clothing company. Ferguson had named the company, as well as its husband and wife co-founders, Deanne and Mark Stidham, as defendants along with Deanne’s son Jordan Brady.
Ferguson will use $4 million of the funds to pay restitution to Washington residents who “lost money, or who may have quit their job or sacrificed opportunities as a result of LuLaRoe’s deception, but who failed to make a ‘full-time’ income as LuLaRoe promised.” The state estimates about 3,000 residents will get checks as part of this deal.
