Amazon Prime recently released a docuseries entitled LuLaRich which exposes the company’s deceptive business practices which targeted work-from-home mothers with a “scam.”
Sister Wives Spoilers: ‘Unlawful, Fraudulent Pyramid Scheme’
The Sun recently revealed that the company had been hit with a class-action lawsuit, months before the four-part docuseries aired.
The lawsuit, which was brought by former retailer, Jessica Ponkey, on behalf of 30 others, was for an endless chain scheme, false advertising, unfair and deceptive practices, and more.
According to court papers obtained by The Sun, Jessica called LuLaRoe an, “unlawful, fraudulent pyramid scheme which preys on stay-at-home mothers, promising them they can generate substantial income while still being able to spend time at home with their families.”
Sister Wives Spoilers: Earning Millions ‘On the Backs of Women’
It is also stipulated that the company makes its, “primary income,” not from sales of products, but from its ability to recruit others into the scheme.
Per The Sun, the plaintiffs were “doomed from the start,” despite their hard work, because the company, “systematically rewarded recruiting consultants over retail sales of the product.”
They claimed the flawed and crooked business model allowed those few at the top, mainly Mark Stidham and Deanne Brady, to pull in millions of dollars for themselves.
The lawsuit papers went on to say that Stidham and Brady had earned, “hundreds of millions of dollars in profit for themselves on the backs of women,” who had sought a legitimate opportunity where they could earn an income while spending more time at home with their families.
Jessica who had been a consultant for the company from March 2017 to December 2018 claimed that she had, “suffered damages as a direct and proximate result of Defendants’ misconduct.”
The cost of joining the “scheme” was between $2,000 and $9,000 depending on the amount of product.
Per The Sun, the lawsuit claimed that there was a demand for inventory that the company could not accommodate.
Sister Wives Spoilers: Mykelti Defends LuLaRoe
Christine’s daughter Mykelti, 25, who also works for LuLaRoe, defended the company in an Instagram post saying that the documentary had been edited for the sake of drama.
She went on to say that she hadn’t been misinformed and that the company doesn’t lie to its retailers.
The reality TV star claimed it was bitter employees trying to blame the company for their own failures.
The Sister Wives alum concluded that those that remain with the company do so because they know it’s work and that they are willing to “put in the effort.”