In Lehman’s terms, LuLaRoe is accused of being a pyramid scheme. The company’s buy more, sell more business plan has caused independent retailers to take out loans and max out credit cards.  It costs direct buyers or consultants between $5000-$9000 to start selling LuLaRoe, according to the WSB-TV website.

The lawsuit claims the market for leggings was over saturated with consultants.  The over saturation allegedly caused it to be VERY DIFFICULT for consultants to recoup their investment.

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