LuLaRoe CEO Mark Stidham has shot back to a supplier's $ 49 million trial against the multi-level marketing company saying…
LuLaRoe CEO Mark Stidham has shot back to a supplier’s $ 49 million trial against the multi-level marketing company saying that some of the clothing’s supporting testimonials are “patently false” and “nonsense.”
Providence Industries said in the suit that LuLaRoe has not paid its bills for seven months and accused the company’s founder Mark and DeAnne Stidham of hiding assets in “shell” companies to fund their “lively lifestyle.”
At A hearing in California to the Riksdag on Wednesday, Providence Industries immediately demanded nearly $ 34 million in assets from LuLaRoe, claiming that Mark Stidham is an avalanche because of his alleged threat of “jumping” with the company’s wealth.
Read more: The LuLaRoe provider demands immediate seizure of $ 34 million assets after the President’s alleged threat to “jump ships” with their wealth
Leaders from Providence Industries and LuLaRo’s former chief designer Patrick Winget submitted sworn statements in support of some of the allegations of the court.
In reply, Stidham said he did not h Are any plans to fly with the company’s money, according to a copy of Stidham’s testimony filed in court on Wednesday.
“To be clear, I have not, and have never had, any intention or plans to abandon abroad with money,” he said. “On the contrary, I’m still engaged in the LuLaRoe business and continue to work on the business daily.”
Stidham identified four LuLaRoe properties, including three warehouses and a commercial office space, and said the company is current on its rents for all these properties.
“The proposal that I would be frightened with hundreds of millions of dollars from LuLaRoe and flying to the Bahamas ̵
1; or elsewhere – is absurd,” he said, “testimony of this is ruthless, misleading and offensive.”
Read more: LuLaRoe is facing assembly debt, redundancies and an abundance of top sellers, and sources say it may be implanting $ 2.3 billion laying empire
In connection with the trial’s claim that Stidham had created 17 “shell” companies between July and December 2017 to hide assets, he said, “this is nonsense.”
Stidham said that the companies “consist of real estate and investment companies, some of which were created for real estate planning.”
“There is no cruel or erroneous purpose for why these devices were formed.”
Stidham also drew up a swearing statement from Winget, who was LuLaRoe’s chief designer from 2013 to September 2018.
Winget claimed that Stidham made several alleged threats to fly with the company’s money.
Stidham refused to make such statements to Winget and referred to him as an “unhappy former LuLaRoe employee I completed earlier this year.”
LuLaRoe representatives told Business Insider in October in an e-mail that Winget had “decided to lose its role and drive other opportunities”.
“Patrick has added strong expertise in production and design at LuLaRoe,” said the statement. “While we will miss his passion for fashion, we are happy about him and continue to call him.”
Another hearing on the matter is scheduled Friday morning.