Alaska LuLaRoe Sales Tax Suit Denied Class Certification

A lawsuit accusing multilevel-marketing company LuLaRoe LLC of improperly charging sales tax for clothing purchases and seeking $36 million in damages was denied class certification by the U.S. District Court for the District of Alaska.

LuLaRoe submitted declarations from its retailers that some class members had received discounts to offset the tax, so they didn’t experience the “monetary harm” alleged in this suit that would give them standing, the opinion said.

All class members must have standing to recover individual damages, which requires examining if individualized inquiries predominate over common questions, the court said. Here, the opinion said ...