Michael L. Feinstein, P.A.

LuLaRoe files countersuit as business litigation continues

Though multiple Florida businesses may work together in various ways, those business relationships may not always go smoothly. A company may work with a supplier in order to manufacture their goods, but disputes over payment could lead to problems. In fact, business litigation over such matters commonly results.

It was recently reported that multi-level marketing company LuLaRoe has filed a countersuit against a former supplier. Apparently, the supplier, Providence Industries, first filed suit against LuLaRoe last year, claiming that the company had not paid its bills for seven months. The lawsuit was reportedly seeking $49 million. However, LuLaRoe's countersuit claims that the supplier participated in unfair business practices, fraud and breach of contract.

As part of those allegations, LuLaRoe claims that Providence Industries purposefully under delivered products, overcharged LuLaRoe for those products and charged $5 million for storage. The suit also claims that Providence personally attacked LuLaRoe and its founders and delivered defective products that LuLaRoe could not sell. The countersuit is seeking $1 billion in damages, but the claims were deemed outrageous by a spokesperson for Providence Industries.

Business litigation can become complicated and messy quickly. Suits and countersuits can cause cases to go on for years, and companies can have a difficult time working toward the outcomes they hope to achieve. Of course, litigation is often necessary to combat claims and address wrongdoing by other businesses. If Florida company owners believe that they have reason to move forward with a lawsuit, they may want to consult with their legal counsel about their best courses of action regarding litigation and fighting against claims.

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