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Home / Business / LuLaRoe lawsuit: CEO says he has no plans to ‘jump ship’

LuLaRoe lawsuit: CEO says he has no plans to ‘jump ship’



The LuLaRoe CEO, Mark Stidham, dismissed the $ 49 million lawsuit of a supplier against the multilevel marketing company, saying that some of the supportive testimonials of the suit are "patently false" and "without sense".

The supplier, Providence Industries, said that LuRaRoe failed to pay the bills for seven months and accused the founders of the company, Mark and DeAnne Stidham, of hiding assets in "shell" companies to finance their " lavish lifestyle "".

Last Wednesday, during a California audition, Providence Industries called for immediate withdrawal of nearly $ 34 million in assets from LuLaRoe, claiming that Mark Stidham is a risk of escape due to of his alleged threats of "skiping the ship" with the wealth of the company.

To learn more: The LuLaRoe provider requires immediate seizure of assets for $ 34 million after alleged threats from the CEO of "jumping the ship" with its wealth

Executives Providence Industries and former LuLaRoe chief designer, Patrick Winget, presented sworn statements in support of some of the claims in the lawsuit. [1

9659002] In response, Stidham said he did not intend to escape with the company's money, according to a copy of Stidham's testimony that was filed in court on Wednesday.

"To be clear, I have not, and never had, any intention or intention to escape abroad with money," he said. "On the contrary, I remain involved in the LuLaRoe business and I continue to work every day on the business."

Stidham continued to identify four LuLaRoe properties, including three warehouses and a commercial space, and claimed that the company is in service for all properties.

"The suggestion to run away with hundreds of millions of dollars from LuLaRoe and flee to the Bahamas – or elsewhere for that matter – is absurd," he said, and "the evidence of this effect is reckless, misleading and offensive."

To learn more: LuLaRoe is facing rising debts, layoffs and a top seller exodus, and sources say the $ 2.3 billion legging empire could implode [19659002] In relation to the affirmation of the cause Stidham had created 17 shell companies between July and December 2017 to hide assets, he said, "this is nonsense".

Stidham said the companies "consist of real estate companies and investment companies, some of which were created for real estate planning purposes".

"There is no nefarious or improper purpose for why these entities were formed."

Stidham also turned to a sworn statement by Winget, who was the chief designer of LuLaRoe from 2013 until September 2018.

Winget claimed that Stidham had made several alleged threats to escape with the company's money.

Stidham denied that he had made such claims to Winget and referred to him as a "former LuLaRoe clerk discontented that I closed this year".

The representatives of LuLaRoe told Business Insider in October in a statement sent by e-mail that Winget had "decided to abandon its role and pursue other opportunities".

"Patrick has added a strong experience in production and design to LuLaRoe", reads the note. "While we will miss his passion for fashion, we are excited for him and will continue to cheer him up."

Another hearing on the case is scheduled for Friday morning.


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