LuLaRoe faces a federal lawsuit in California after being accused of being an illegal pyramid scheme and of violating a federal racketeering law that has been used to target members of organized crime.

CBS News reports the suit was filed Oct. 23 by on behalf of all LuLaRoe consultants since 2013.

The lawsuit accuses the company of violating California state law along with the Racketeering Influenced and Corrupt Organizations Act (RICO). Among the allegations are that LuLaRoe duped people into becoming nonemployee distributors by falsely claiming that they could earn full-time pay for part-time work, according to the report.

"Once consultants signed up, they were pressured to invest and reinvest by purchasing Defendants' clothing products -- regardless of whether they were able to sell their inventory," the case says. "Plaintiffs were inundated with the slogan 'buy more sell more' and were told they would recoup their investments through retail sales and recruitment."

LuLaRoe has morphed into a national fashion brand, best known for its women's leggings, with a sales force of more than 80,000.

CBS News reports that LuLaRoe is facing a separate legal action filed Oct. 13 in a federal court over its decision to make it more difficult for sellers who want to quit to get a refund for their unsold merchandise.

The company promised in April to take back unsold inventory from distributors, who had been bombarded with complaints about product quality, and would refund them 100 percent plus shipping costs, according to the report.

Other suits are pending against LuLaRoe for allegedly selling defective merchandise and for collecting sales tax in states that don't charge it on clothing sales, CBS News reports.