Judge denies LuLaRoe supplier's request to immediately seize $34 million of the company's assets
- A judge has denied a LuLaRoe supplier's request to immediately seize nearly $34 million in assets from the multi-level marketing company.
- The supplier, Providence Industries, has sued LuLaRoe for nearly $49 million, alleging that the company has failed to pay its bills for seven months.
- The next hearing in the case is scheduled for January 28.
A judge on Friday denied a LuLaRoe supplier's request to immediately seize nearly $34 million in assets from the multi-level marketing company.
The supplier, Providence Industries, filed suit against LuLaRoe on November 29 for nearly $49 million, alleging that the company has failed to pay its bills for seven months.Several days later, Providence filed a request for the immediate seizure of assets, alleging that LuLaRoe CEO Mark Stidham is a flight risk because of his access to a private jet and his alleged threats to "jump ship" with the company's riches.
In response, Stidham said in a sworn statement that he had no plans to abscond with the company's money.
"To be clear, I do not have, and have never had, any intention or plans of absconding abroad with money," he said.
California state Judge John Stroud denied the request for immediate asset seizure on Friday. The next hearing in the case is set for January 28.
"Judge John Stroud, who is temporarily presiding over the case, declined to grant this relief on an emergency basis but invited Providence Industries to return to court in a few weeks to seek non-emergency relief," Providence Industries said in a statement. "Providence Industries is confident that once the court fully considers the evidence that it will prevail and will continue to vigorously seek repayment of its debt."Read more: LuLaRoe supplier sues for $49 million and accuses the company's founders of hiding assets in 'shell' companies
LuLaRoe sent an email to consultants on Friday shortly after the hearing with the subject line "Legal Update."
"For those of you following some of the chatter, Providence Industries, LLC, a former LuLaRoe vendor, brought ex parte applications seeking a receiver or writ of attachment against LuLaRoe," the company said, according to a copy of the email reviewed by Business Insider. "This morning, the court denied the ex parte applications. The court also encouraged LuLaRoe and this vendor to attempt to amicably resolve what is a very complex and heavily disputed matter."
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