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A popular online clothing retailer has been hit with two new lawsuits accusing it of establishing a ruinous 'pyramid scheme' pressuring resellers to buy tens of thousands of dollars worth of inventory even though the clothes proved impossible to peddle.
Lu La Roe, a company based in Corona, California, is currently facing two class action lawsuits; the first was filed on October 13, and the second on Monday.
Lu La Roe told Daily Mail Online in a statement: 'We take all litigation—regardless of its lack of merit—seriously.
We have not been served with the recent complaints, but from what we have seen in media reports, the allegations are baseless, factually inaccurate and misinformed.
The latest filing also points out that as more and more distributors were recruited into the venture, the quality of products started to decline.
This echoes a previous lawsuit filed in April this year against the company as thousands of customers complained about the brand's leggings, which according to one person ripped like 'wet toilet paper'.
Lemberg currently has approximately ,000 worth of inventory, over 1,000 items of Lu La Roe clothing, in her possession, which have now been subject to Lu La Roe’s "policy change", depriving Ms.
They must also purchase between ,925 and ,000 worth of initial inventory and marketing materials and have no control over the clothes they are sent and tasked with reselling, the suit alleges.We will vigorously defend against them and are confident we will prevail.'This is not the first time this year Lu La Roe has faced legal action.In April, a lawsuit filed by Julie Dean and Suzanne Jones alleged that Lu La Roe knowingly created low-quality products that are 'of such poor quality that holes, tears, and rips appear before wearing, during the first use or shortly thereafter.'In a particularly disturbing allegation, the plaintiffs insisted Lu La Roe's leggings tear as easily as 'wet toilet paper.' Furthermore, the suit claimed that Lu La Roe was not only aware of these issues, but that the company actually refused to properly assist customers who filed complaints or initiated returns.On its website, it promises those tempted to become resellers their 'own happy ending'. According to the one filed on Monday, participants were recruited unknowingly in what turned out to be an exploitative pyramid scheme 'through manipulation and misinformation'.'Recruits were told that the opportunity entailed "part-time work for full time pay,"' the suit states.'This was not the case.Once consultants signed up, they were pressured to invest and reinvest by purchasing [Lu La Roe]' clothing products—regardless of whether they were able to sell their inventory.
'They failed even though they were committed and put in the time and effort.