Katie Denney Martin

Martin is married with a 2-year-old son, and she said she started selling LuLaRoe in October 2016 because she was intrigued by an opportunity to stay home with her baby and make money.

"I knew a few others who had gotten involved and had success, and the internet was filled with stories about women making their investment back in months, and who were able to quit their jobs and stay home with their children," she said.

Her initial investment in the company was $5,000. She then spent another $600 for an initial order of leggings, and around $1,000 on other items necessary for running the business. After that, she said she was told she had to order at least 33 items a month, which typically were at least $600.

"I had to use credit cards not to start the business, but to continue it. I can’t even calculate the time I spent away from my family, or the stress I have gone through in the last year, but I would say I put in around $11,000 total when all is said and done, and I probably only made about $4,000," she said. "Everything I had went immediately back into my business, or to pay off what I’d spent on inventory and supplies on credit cards."

She soon grew concerned about aspects of the company's business model, like the fact that sellers did not get to pick which styles or sizes they were sent, the amount of new sellers joining up, and the quality of the clothes.

"I never got clear answers, was told that was just the way it is, and was told that my complaints were 'impeding others pursuing the American Dream,'" she said.

Ultimately, it was concerns about the clothing's quality, as alleged in a April lawsuit, that made her decide to quit.

"By the time I went to go and return my merchandise, once I had tried (and failed) to sell it through other measures, I was told it wasn’t guaranteed they would return money," she said. "They said they would donate any items they couldn’t resell, and we wouldn’t have any say in the matter."

She added: "I wiped out a good amount of savings, and I continue to try and pay off those debts, and still have a lot of inventory I can do nothing with."

In response to Martin's claims, LuLaRoe stated Martin has not attempted to return any merchandise for a refund since quitting in April.