LANSING, Mich. (WSYM) - The company known for its vibrant leggings has been hit with a $1 billion dollar class action lawsuit.
Three California women, former consultants for LuLaRoe, claim they were coaxed into a pyramid scheme.
The lawsuit also claims consultants were told to keep about $20,000 worth of inventory on hand and pressured to continue buying, even when the items were piling up in the garage.
LuLaRoe calls the allegations baseless and inaccurate.
The company is also facing lawsuits for selling defective merchandise and collecting sales tax in states that don't charge it on clothing sales.