In a Federal Court in March, attornies for a group of consultants provided the sordid details in the class-action filing. According to the suit, LuLaRoe is a fraudulent pyramid scheme that preys on stay-at-home mothers. The company promotes the business as a way for mothers to make extra income for their families. LuLaRoe recruits women to join the company and promises that they will be able to sell their clothing. Despite the claims made by the company to recruits, the suit alleges the company ran an illegal pyramid scheme from 2013-mid-2017. Additionally, they allege that LuLaRoe knew the company was an illegal pyramid scheme while they recruited women to join the company. From the company’s inception until at least mid-2017, LuLaRoe paid the majority of their commissions and bonuses on the recruitment of new members. New members purchased start-up packages ranging from $5,000 to $9,000.00.