4th Nov 2021 10:43
(Alliance News) - boohoo Group PLC on Thursday said it has struck an early settlement deal for a legal matter in California.
In a class action suit, the company was alleged to have misled customers with on pricing.
Lawyers said the company advertised "fake and inflated comparison reference prices to deceive customers into a false belief" that the actual sale price is discounted. In November of last year, the US District Court for the Central District of California denied a motion to dismiss.
The Financial Times in July reported boohoo could have faced a damages bill of USD100 million if the legal claims were successful.
However, boohoo on Thursday said it secured a "preliminary settlement".
"boohoo is pleased to report that the parties have notified the District Court that they have agreed to the terms of a preliminary settlement relating to the claim. The preliminary settlement will be covered in full by the existing provisions disclosed in the group's latest published accounts," the company explained.
"Whilst there is no guarantee that the preliminary settlement will result in a final settlement of the claim, the parties will now work together to incorporate the terms of the preliminary settlement into a legally binding settlement agreement."
boohoo shares were 3.9% higher at 192.30 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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