LuLaRoe Founders Accused of Hiding Millions to Avoid Creditors

Many of those people have struggled to find success with LuLaRoe, and the company has been sued by former consultants and customers alleging a wide range of misconduct, from improper sales tax collection to running an illegal pyramid scheme, all of which the company has denied. Now, a new suit takes aim at company founders Mark and DeAnne Stidham, alleging that they’ve hidden tens of millions of dollars in shell companies to avoid paying their creditors.

Rack of unsold inventory in the basement of LuLaRoe fashion consultant Amy Jo Reece.

Photographer: Damon Casarez for Bloomberg Businessweek