There is no active class action lawsuit against Shop LC as of mid-2026, and the Austin-based home-shopping retailer’s own terms of service prohibit customers from bringing or joining one. The lawsuits currently involving Shop LC are a handful of federal intellectual-property cases, a customs dispute the company itself filed, and a Texas sales-tax fight — none of them consumer claims a shopper could join.
Is There a Class Action Against Shop LC?
No. ClassAction.org has kept an investigation page open asking customers about problems with the Liquidation Channel, Shop LC’s former name, and states that attorneys are looking into whether a class action could be brought. That page has been up for some time without a complaint being filed.1ClassAction.org. Liquidation Channel Lawsuit Signing up on an investigation page is not the same as joining a lawsuit; it registers your interest with a firm that may or may not eventually file one.
Why a Class Action Would Be Hard to Bring
Shop LC’s terms and conditions include a mandatory arbitration clause and an explicit class action waiver. Under Section 6 of those terms, customers agree that disputes will be resolved through binding individual arbitration in Austin, Texas, under the American Arbitration Association’s Commercial Rules, with discovery limited to five document requests. The waiver bars participation in any class, consolidated, or representative action, and Shop LC calls the waiver a “material and essential part” of the agreement.2Shop LC. Terms and Conditions of Use
Two other pieces of that clause matter for anyone considering a claim. Before starting arbitration, you must send a written description of the dispute to Shop LC’s Austin headquarters and give the company 60 days to resolve it. And every dispute must be initiated within six months of the problem arising or within six months of the purchase date, whichever applies.2Shop LC. Terms and Conditions of Use That six-month window is much shorter than the statutes of limitations that would otherwise apply to consumer claims. Small-claims court remains an option the arbitration clause carves out.
Lawsuits Currently Involving Shop LC
The cases on Shop LC’s docket in recent years have been business-to-business or government disputes, not consumer suits.
Sarda, Inc. v. Shop LC Global Inc.
A jewelry company called Sarda, Inc. sued Shop LC in August 2023 in the U.S. District Court for the Western District of Texas, alleging copyright infringement of jewelry designs. Shop LC moved to dismiss in March 2024, Sarda filed an amended complaint, and after several summer stays the court terminated the case on September 5, 2024. The docket shows no public judgment or published settlement terms.3CourtListener. Sarda, Inc. v. Shop LC Global Inc.
LINFO IP, LLC v. Shop LC Global, Inc.
A patent infringement case filed in June 2023 in the same federal district, before Judge Alan D. Albright, ended on May 22, 2024, with a stipulated dismissal — the parties agreed to end the litigation on their own terms.4CourtListener. LINFO IP, LLC v. Shop LC Global, Inc.
Shop LC Global Inc. v. United States
In December 2025, Shop LC filed suit in the U.S. Court of International Trade against the United States, U.S. Customs and Border Protection, and CBP Commissioner Rodney S. Scott. The case is pending before Judge Richard K. Eaton. The docket does not detail the specific customs issue, but that court handles tariff classifications, duties, and import restrictions.5PACER Monitor. Shop LC Global Inc. v. United States et al
Shop LC Global, Inc. v. Hegar
Shop LC has a pending case in Travis County, Texas, against Texas Comptroller Glenn Hegar. The dispute is over whether the jewelry pouches and boxes Shop LC uses qualify for a Texas sales-tax exemption, either as items bought “for resale” or under a manufacturing exemption.6Texas Comptroller of Public Accounts. TX Tax in 2025 – The Comptroller, Legislature, and Judiciary
How Customer Disputes Actually Get Resolved
The realistic path for most Shop LC customers with a problem runs through the Better Business Bureau or the company’s own customer service, not the courts. Shop LC has been BBB-accredited since October 2007 and holds an A+ rating, but the bureau has also logged 199 complaints against the company over the past three years, with 62 closed in the most recent 12 months. Product issues account for 102 of them, delivery problems for 41, and service or repair disputes for 23.7Better Business Bureau. Shop LC BBB Complaints
Of those 199 complaints, 80 were marked as resolved to the customer’s satisfaction; the other 119 were answered by Shop LC but not confirmed as resolved. Typical resolutions have included refunds, store credit, honoring disputed discounts, and covering outside repair costs in some cases.7Better Business Bureau. Shop LC BBB Complaints
A few themes come up often enough to flag:
- Clearance items are treated as final sale, even though the website advertises “30-day easy returns.” Shop LC has said it will still process refunds for verified defects on clearance merchandise.8Better Business Bureau. Shop LC BBB Complaints Page 2
- The “BudgetPay” installment option has produced billing surprises when a card on file declined or when an order was cancelled but payments continued. In one case, a customer was charged $1,594.98 for a ring listed at $46.99, and the company confirmed a refund was eventually processed.9Better Business Bureau. Shop LC BBB Complaints Page 16
- Some buyers have reported gemstones that looked cloudy or off-color compared to what was shown on air. One customer whose platinum pendant was independently appraised as “not worth its value” had a return denied because the item was sent to the wrong facility.8Better Business Bureau. Shop LC BBB Complaints Page 2
- If you file a chargeback with your bank, Shop LC has said it cannot issue a direct refund while the bank’s review is pending, which can leave the money in limbo for a stretch.7Better Business Bureau. Shop LC BBB Complaints
If informal resolution fails and you want to press a claim, the arbitration clause sets the process: written notice to the Austin headquarters, a 60-day cure period, and individual arbitration or small-claims court within six months of the dispute.