LuLaRoe – a multi-level marketing company that sells leggings – is currently taking fire from both their sellers and their supplier.
The company's chief clothing supplier, Providence Industries, recently filed a lawsuit against LuLaRoe for nearly $49 million. The lawsuit claims LuLaRoe has avoided paying their bills for the last seven months, Business Insider reports.
The supplier's lawsuit accuses the legging company of being insolvent. Mark and DeAnne Stidham – the founders of LuLaRoe – are being accused of using shell companies to hide their assets, so that they can continue to afford their extravagant lifestyles while avoiding payment of their debts.
In total, the lawsuit identifies 17 different limited liability companies all connected to Mark and DeAnne, and all were founded between July and December of last year. The suit claims that the Stidhams used these shell companies to purchase millions of dollars in vehicles, real estate, private aircrafts, and other expensive assets. The lawsuit accuses the LuLaRoe founders of using these limited liability companies to "hinder, delay, and defraud the creditors."
The supplier also claims in the lawsuit that an attempt was made to confront Mark on September 7 of this year, regarding his past due bills, to which he allegedly responded by saying, "Look guys, I am not going to pay you guys a f***ing dime unless a judge orders me to pay it, and DeAnne and I will take our two to three hundred million dollars to the Bahamas, and f*** everything."