LuLaRoe, the ridiculously successful fashion company known for its bright and comfortable leggings and genius marketing plan, is in trouble. While the company’s innovative direct sales model (one that relies largely on Facebook and other Internet communities) has made many women loyal supporters of the business because it allows them the unique opportunity to build their own pop-up shops and make commission as consultants, the business structure has also had its complications. The California-headquartered company was slammed with a lawsuit on Feb. 17 in U.S. District Court in Western Pennsylvania that alleges it has been illegally collecting sales tax in states that don’t have it.



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