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Former LuLaRoe consultants allege pyramid scheme, seek restitution

By Noddy A. Fernandez | Oct 31, 2017

LOS ANGELES (Legal Newsline) – Three Sacramento County residents and former LuLaRoe consultants allege that they were "unknowingly recruited" into a pyramid scheme.

Aki Berry, Cheryl Hayton and Tiffany Scheffer filed a complaint on Oct. 23 in the U.S. District Court for the Central District of California against Lularoe LLC, doing business as LuLaRoe, LLR Inc. and Does 1 through 100 inclusive for alleged violations of California's Unfair and Deceptive Practices Act and the Racketeer Influenced and Corrupt Organizations Act (RICO).

According to the complaint, the plaintiffs invested $5,000 to $6,000 to become LuLaRoe consultants in 2015 or 2016 and have since resigned. They allege they were unable to attain a net recovery of their investments despite their efforts.

The plaintiffs hold LulaRoe responsible because the defendant allegedly failed to disclose to consumers that they were entering into an illegal pyramid scheme and misrepresented the money that a consultant would earn.

The plaintiffs request a trial by jury and seek an award of general, compensatory and exemplary damages; restitution; permanent injunctive relief; cost of suit; attorneys' fees; and for such other damages; relief and pre- and post-judgment interest as the court may deem just and proper. They are represented by Joshua H. Watson of Clayeo C. Arnorld in Sacramento, California.

U.S. District Court for the Central District of California case number 5:17-cv-02176-SVW-SP

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LuLaRoe U.S. District Court for the Central District of California

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