$6M Lia Sophia Class Action Settlement Benefits Customers, Sales Reps

A $6.7 million settlement has been reached in a class action lawsuit that was filed shortly after the direct-sales jewelry company Lia Sophia suddenly shut down in February 2015, leaving sales advisors out of work and customers without the promised lifetime replacement guarantee.

Plaintiff Cynthia West, a former Lia Sophia sales advisor, filed the Lia Sophia class action lawsuit in June 2015, claiming the company’s owners knew for months that they planned to shut down the direct sales portion of the company and sell the merchandise exclusively online.

Even though the Lia Sophia owners allegedly knew that they would shut down the business, West says they continued to recruit new sales advisors, many of whom paid $99 to $149 for starter kits.

The Lia Sophia class action lawsuit accused the jewelry company of refusing to honor its lifetime guarantee on purchases even though it continued to sell merchandise online. West claims that the lifetime replacement guarantee was an essential part of the direct-sales model and allowed Lia Sophia to charge a higher price for its jewelry.

The defendants deny any wrongdoing but agreed to settle the Lia Sophia class action lawsuit to avoid the burden and expense of ongoing litigation.

“This Settlement is a product of over two years of litigation, extensive discovery, and four mediations,” the plaintiffs’ motion for preliminary approval of the Lia Sophia class action settlement says. “The Settlement resolves the dispute relating to Plaintiffs’ claims of Defendants’ breach of contract, violation of the Illinois Consumer Fraud and Deceptive Practices Act, fraud and unjust enrichment.”

The Lia Sophia class action settlement was preliminarily approved on Nov. 29, 2017.

According to the Lia Sophia settlement documents, approximately 4 million Lia Sophia customers will be eligible for compensation. The payment amount will depend on how much the customer spent and the total number of eligible Class Members who file claims.

Additionally, 19,069 sales advisors who sold at least $250 worth of jewelry between Jan. 1, 2014 and Aug. 17, 2014 and 2,709 new sales advisors who purchased initial starter kits between Aug. 1, 2014 and Dec. 1, 2014 will be able to claim a cash payment. New sales advisors will be reimbursed for the amount they spent on their starter kits, and sales advisors will be eligible to claim an award based on their sales.

Eligible Class Members should receive direct notice of this Lia Sophia settlement by the end of January 2018. A class action settlement website will also be established by Jan. 8, 2018, according to the settlement documents.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Joseph J. Siprut, Todd L. McLawhorn and Ke Liu of Siprut PC.

The Lia Sophia Class Action Lawsuit is Cynthia West, et al. v. Act II Jewelry LLC, et al., Case No. 1:15-cv-05569, in the U.S. District Court for the Northern District of Illinois.

UPDATE: January 2018, the Lia Sophia jewelry, sales rep starter kit class action settlement is now open. Click here to file a claim.