LuLaRoe
January 9, 2026
LuLaRoe has reached a settlement in a federal lawsuit accusing the clothing direct seller of improperly charging sales tax on purchases shipped to customers in Alaska, according to a notice filed in the U.S. District Court for the District of Alaska.
The notice, filed January 8, 2026, said plaintiff Katie Van and LuLaRoe had reached an agreement in principle, were finalizing settlement documents and would file a dismissal within 60 days. Terms were not disclosed. The suit, Van v. LLR, Inc., had sought 36 million dollars in damages.
Van filed the case in 2018, alleging LuLaRoe collected sales tax on clothing sold to customers in jurisdictions that do not impose such a tax. Class certification was denied in December 2023 after the court found that common proof could not be used to determine which putative class members were injured. LuLaRoe has said it refunded the erroneous sales tax charged on purchases in the state.