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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. 

LulaRoe 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 

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