Emergency Seizure of Assets Request Denied in LuLaRoe Lawsuit

Emergency Seizure of Assets Request Denied in LuLaRoe Lawsuit December 7, 2018

LuLaRoe and Providence Industries faced off in court today over a lawsuit filed by Providence Industries against LuLaRoe. In the hearing, the court was asked to review an Ex-Parte application filed by Providence. In the request, Providence asked the judge to seize and freeze the assets from owners Mark and Deanne Stidham. The supplier argued that Mark Stidham was a flight risk.

According to court documents filed in Riverside Superior Court, the former supplier and LLR faced off before the judge at 8:44 am Pacific Standard Time.

Providence is suing LLR for not paying them nearly 49 million dollars for goods and services. As a part of their lawsuit, the supplier filed a Writ of Attachment. In the Writ of Attachment, Providence asked the court to place all money and properties owned by LLR and the Stidham’s in a trust.

Following brief arguments by both counsels, Judge John V Stroud determined he could not rule on the order. The Ex Parte Application included more than a dozen shell companies that Providence alleges LLR set up to hide assets from their creditors.

Based on the arguments and facts presented to the court, the judge denied the request to seize assets. Sources connected to the case say the judge only rejected the request due to the complexity of the situation. Thus far hundreds of pages related to declarations, statements, and evidence have been submitted to the court.

At present, the judge determined emergency asset seizure was not necessary until the court receives more proof that the Stidham’s could leave the country.

Mark Stidham argued in court earlier this week that he had no intention of running off to an island with the money.

Naturally, LuLaRoe is claiming the denial as a victory. The company took to social media to share the news with their thousands of retailers:

Multiple sources connected to the case say the judge did encourage the two parties to attempt to work out the dispute. However, given the fact that Providence has been unable to obtain the $48 million debt from LLR, a truce between the two seems unlikely.

The lawsuit will move forward to the next phase. According to court records, the next scheduled court date is January 28th.

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