California-based clothing retailer LuLaRoe (known for its printed leggings sold via individual reps; often via Facebook) – and which recently opened a $16 million distribution facility in Blythewood (in the former Bose plant) – is being sued for up to $1 billion via several class-action suits for allegedly operating under a pyramid scheme.
The lawsuits say LuLaRoe tightened its return policy in September, leaving many of its 80,000 independent sellers (who are non-salaried, mostly millennial women) with thousands of dollars in non-returnable merch.
Allegedly, LuLaRoe’s main source of income is inventory purchases by individual sellers – they each buy a minimum of $5,000 of inventory.
Currently, the Blythewood plant employs 500 people, with another 500-person shift set to be added in 2018. Whether this lawsuit will affect the S.C. plant + the 1,000 jobs it would bring to the area is TBD.
