Mark Stidham, CEO of LuLaRoe, has withdrawn the supplier's $ 49 million lawsuit against the multi-tier marketing firm, saying that some of the supporting statements in the lawsuit are "obviously false" and "nonsense."
Suppliers Providence Industries said in the lawsuit that LuLaRoe had not paid his bills for seven months and accused the company's founders, Mark and DeAnne Stidham, of hiding assets in "shell" companies to their "lavish lifestyle" finance . "
At a California court hearing Wednesday, Providence Industries called for the immediate seizure of nearly $ 34 million of LuLaRoe, with Mark Stidham threatening to" jump "with the company's wealth
Read More: LuLaRoe Subcontractor Demands Immediate Seizure of $ 34 Million Assets Following CEO's Alleged Threats to Make "Jump Ship" Wealth
Executives from Providence Industries and LuLaRoe's former chief designer, Patrick Winget, submitted sworn statements to support some of the claims in the lawsuit.
Stidham then said he had no plans to flee the company's money, it said a copy of Stidham's statement filed Wednesday on
"To be sure I had and never had the intention or intention to flee abroad with money, "he said. "On the contrary, I remain committed to the LuLaRoe business and continue to work in the business daily."
Stidham identified four LuLaRoe properties, including three warehouses and a business premises, and announced that the company is keeping rents current for all of these properties.
"The suggestion that I would flee LuLaRoe with hundreds of millions of dollars and flee to the Bahamas ̵
Read More: LuLaRoe Faces Increasing Debt, Layoffs, and Exodus of Top Sellers, and Sources Say The $ 2.3 Billion Legging Imperium May Be Implous
Regarding the allegation of the lawsuit that Stidham had created between July and December 17 "shell" companies to hide assets, he said, "That's nonsense."
Stidham said that the companies "consist of real estate and investment holding companies, some of which have been created for real estate planning purposes."
"There is no nefarious or inappropriate purpose as to why these entities were formed."
Stidham also turned to one sworn statement from Winget, who was chief designer of LuLaRoe from 2013 to September 2018.
Winget had alleged that Stidham had made several alleged threats to flow with the company's money
Stidham denied such statements to Winget and described him as "an angry former LuLaRoe employee I quit earlier this year."
LuLaRoe representatives told Business Insider in an e-mailed statement in October that Winget had "decided to step down from his role and pursue other opportunities."
"Patrick has added to LuLaRoe strong know-how in production and design," reads the statement. "While we will miss his passion for fashion, we look forward to him and continue to cheer him on."
Another hearing on this case is scheduled for Friday morning.