Several legal cases were pending, culminating in January 2019, when a class-action lawsuit led by the Washington Attorney General Bob Ferguson was filed against the multi-level marketing Company, LulaRoe. This one alleged that the founders of LulaRoe made false and deceptive representations regarding their business, inspiring thousands of optimistic entrepreneurs to invest their money into the lucrative venture– only to find themselves drowning in debt, mortgaging their homes, and depleting their life savings.
Though many had not yet heard of LulaRoe, this lawsuit would soon topple the billion-dollar enterprise into one of the most well-known scandals in America.
Listen to Episode 54 of The Great Fail to hear the story. Special thanks to Professor Kelly Richmond Pope for her contributions to this segment.
Episode Sources
LuLaRoe Was a Billion Dollar Leggings Empire Until the Lawsuits. LuLaRich Tells the Story
The Rise And Fall Of LuLaRoe’ Investigates Scandal Behind Marketing Company
The MLM LuLaRoe Has Seen Tons of Controversy — Here’s Why
Is LulaRoe Still in Business? Amazon’s ‘LulaRich’ Has Everyone Asking the Same Question
LulaRich! 9 Lessons You Can Learn From LulaRoe’s Downfall
Lessons from LuLaRich that Resellers Can Learn From
4 Shockingly Manipulative Work Moments In The ‘LuLaRich’ Documentary
‘It’s very culty’: the bizarre billion-dollar downfall of fashion company LuLaRoe
These Leggings May Ruin Your Life
LuLaRoe to pay $4.75 million to resolve AG Ferguson’s lawsuit over pyramid scheme
Special Guest
Kelly Richmond Pope
Associate Professor in the School of Accountancy and MIS at DePaul University in Chicago, IL
Founder of Helios Digital Learning, Inc.
Kelly Richmond Pope is an Associate Professor in the School of Accountancy and MIS at DePaul University in Chicago, IL and founder of Helios Digital Learning, Inc. She received her doctorate in accounting from Virginia Tech and she is a licensed certified public accountant. She worked in the forensic practice at KPMG, LLP on anti-money laundering engagements, insurance fraud investigations, and fraud risk management projects. Kelly is a recognized expert in the forensic accounting field and has conducted forensic accounting seminars around the world for universities, corporations and governmental entities.