Business & Economy

Corona-based LuLaRoe hit with $1 billion lawsuit

LuLaRoe founder DeAnne Stidham sits in her corner office at her headquarters in Corona in this file photo. The company has been hit with a $1 billion lawsuit by women who claimed they were left in financial ruin with unsold goods after being recruited to sell its clothing from their homes.
LuLaRoe founder DeAnne Stidham sits in her corner office at her headquarters in Corona in this file photo. The company has been hit with a $1 billion lawsuit by women who claimed they were left in financial ruin with unsold goods after being recruited to sell its clothing from their homes.
Andrea Bernstein, KPCC

A California clothing company has been hit with lawsuits claiming it recruited women to sell its goods from home and left thousands of them with unreturnable merchandise.

The Riverside Press-Enterprise says a federal class-action suit filed Monday seeks at least $1 billion in damages from LuLaRoe, which had $2 billion in sales this year.

The company was started in 2013 by a Southern California mom who had been hosting dress parties for decades.

The suit says the Corona firm encouraged women who wanted to sell its leggings, skirts and other clothing to take out loans, run up credit cards and even sell their breast milk, then left some in financial ruin with unsold goods.

The suit says as many as 80,000 people paid thousands up front for inventory.

Another suit takes aim at changes in the company's refund policy for its sellers.

LuLaRoe calls the suits baseless and inaccurate.