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November 08, 2017 11:14 AM

LuLaRoe Founder: Accusations Of Pyramid Scheme An 'Uneducated Opinion'

New York (CBS)

The husband and wife team behind a multi-level marketing company are defending themselves as the company's former consultants are suing in a class-action lawsuit.

A former LuLaRoe consultant in Sioux Falls told Angela Kennecke earlier this month that she was left with $5,000 in inventory that the company would not provide a refund for.'

In a interview with CBS News, company co-founders Mark and DeAnne Stidham described LuLaRoe as a family-run business and dismissed claims from the lawsuit that company is a pyramid scheme.

"What that is is an uneducated opinion. They haven't looked at who we are because we sell product through to a consumer, and it's highly-desirable product. That is not a pyramid scheme," Mark said. 

To view the full story from CBS News corespondent Anna Werner, watch in the player below:

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