Securities Law News

Pre-Owned Ulta Makeup for Sale? One Tweet Leads to Big Lawsuit

Feb. 27, 2019, 3:47 PM

For cosmetics maker Ulta Beauty Inc., a former employee’s allegations that it was common practice to resell used makeup “made to look new” aren’t going away any time soon.

A judge ruled Feb. 26 that a class-action lawsuit seeking unspecified damages on behalf of consumers in 18 states can proceed. The case grew out of a January 2018 tweet gone viral claiming that whenever merchandise was returned, workers were encouraged to repackage or reseal the item and put it back on the shelf for sale.

The Chicago federal judge rejected the company’s argument that the customers suing failed to describe...

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