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LuLaRoe supplier sues for $49 million and accuses the company's founders of hiding assets in 'shell'
LuLaRoe supplier sues for $49 million and accuses the company's founders of hiding assets in 'shell' companiesLuLaRoe's chief clothing supplier is suing the company for nearly $49 million in a lawsuit claiming the multi-level marketing company has failed to pay its bills for seven months.
The supplier, Providence Industries, said in the suit that it has reason to believe LuLaRoe is insolvent, and accused the company's founders, Mark and DeAnne Stidham, of hiding assets in "shell" companies to fund their "lavish lifestyle."
The lawsuit, filed in a California Superior Court on Thursday, identifies 17 limited liability companies that are tied to the Stidhams that were created between July and December 2017. The suit claims the Stidhams have used them to purchase cars worth at least $2.7 million, properties in excess of $7 million, private planes, and other assets.
The suit said the companies are part of a "scheme" to "hinder, delay, and defraud the creditors."
Read more: https://www.sfgate.com/technology/businessinsider/article/LuLaRoe-supplier-sues-for-49-million-and-accuses-13436543.php
