Owner of FabKids, JustFab and ShoeDazzle Settles Deception Charges
Refunds for consumers duped into signing up for “VIP” memberships.
Since 2023, several false advertising class-action lawsuits have been filed against RugsUSA regarding its marketing of pricing discounts. More information on each lawsuit is below.
| Case Name (Date)  | 
Allegations | Status | 
|---|---|---|
| Preciado et al. v. RugsUSA, LLC  25-cv-1243, D. Colo. (April 2025)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Pending | 
| Zastrow et al. v. RugsUSA, LLC  25-cv-472, W.D. Wash. (March 2025)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Pending | 
| McCarrell et al. v. RugsUSA, LLC  25-cv-454, D. Ore. (March 2025)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Pending | 
| Burch et al. v. RugsUSA, LLC  24-cv-3379, D.D.C. (Oct. 2024)  | 
Falsely advertising discounts off of artificially inflated reference prices | Pending | 
| Wiley et al. v. RugsUSA, LLC  23-cv-3250, W.D. Mo. (Aug. 2023)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Settled (Final approval granted)  | 
| Korda et al. v. RugsUSA, LLC  23-cv-1026, D. Ore. (July 2023)  | 
Falsely advertising discounts from artificially inflated reference prices | Settled as part of a the agreement in the Wiley case and voluntarily dismissed When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled. | 
| Briggs et al. v. RugsUSA, LLC  23-cv-982, W.D. Wash. (June 2023)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Settled as part of the agreement in the Wiley case and voluntarily dismissed When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled. | 
| Lee et al. v. RugsUSA, LLC  23-cv-2412, N.D. Cal. (May 2023)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Settled as part of the agreement in the Wiley case and voluntarily dismissed When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled. | 
| Dray et al. v. RugsUSA, LLC  23-cv-3017, C.D. Cal. (April 2023)  | 
Falsely advertising discounts off of artificially inflated regular prices and as available for a limited time | Voluntarily dismissed | 
Refunds for consumers duped into signing up for “VIP” memberships.
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