LuLaRoe
September 5, 2024
A federal judge in the Central District of California on September 5, 2024 dismissed with prejudice a proposed class action that former consultant Jessica Ponkey brought in March 2021, alleging that LuLaRoe operated an unlawful, fraudulent pyramid scheme.
The court granted the motion by LuLaRoe parent LLR, Inc. to dismiss the first amended complaint. It found valid and enforceable the one-year limitations period in the LuLaRoe Independent Consultant Program agreement, which made the claims time-barred because they were filed years after the plaintiffs became consultants. Because the parties agreed the claims depended on that provision being invalid, the court denied leave to amend as futile.
The case had been reopened in 2023 after the Ninth Circuit reversed an earlier order compelling arbitration. Ponkey filed a new appeal to the Ninth Circuit on September 18, 2024.