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As part of its settlement with the state of Washington, LuLaRoe will have to shell out $4.75 million. LuLaRoe sells leggings and other clothing to a network of independent retailers, who can recruit other retailers to sell the company’s products. Pyramid schemes make money by recruiting people rather than by selling actual products or services, even if the scheme includes the selling of a product. Pyramid Collection is a unique and creative retailer of whimsical products. The popular Pyramid Alehouse in Sodo will pay $450,000 to about 300 current and former workers who sued over unpaid wages, in a settlement approved Tuesday by a King County Superior Court judge. The lawsuit, filed in U.S. District Court for the Western District of Washington, asserts the sale violates the conditions Congress placed on agencies’ ability to sell federal properties on an expedited basis and fails to appropriately account for the records’ importance to the Pacific Northwest region. 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SEATTLE — Attorney General Bob Ferguson announced today that LuLaRoe will pay $4.75 million to resolve Ferguson’s consumer protection lawsuit asserting that LuLaRoe, a California-based multi-level marketing business that sells leggings and other apparel to a network of independent retailers, was operating a pyramid scheme. On ExpressNews.com: Ex-Edison High teacher ran pyramid scheme, state alleges The complaint, filed in May 2018, sought potential damages of … How a Pyramid Scheme Works . Facebook is believed to be readying a lawsuit aimed at loosening Apple's grip on the App Store that serves as an exclusive gateway onto iPhone. $4 million going to help Washingtonians deceived by LuLaRoe. LuLaRoe is now facing a $49 million lawsuit from its old supplier (LuLaRoe countersued the supplier for $1 billion) and a class-action lawsuit from angry customers alleging they were sold defective clothing they couldn’t return. 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