Boohoo agrees preliminary terms to settle U.S. class action lawsuit
Reuters
Published Nov 04, 2021 09:09
Updated Nov 04, 2021 09:42
(Reuters) - Boohoo said on Thursday it has agreed to terms of a preliminary settlement with parties that brought a U.S. class action claim alleging that the British online fashion retailer's promotions in California misled shoppers.
The company, which sells clothing, shoes, accessories and beauty products, said the preliminary settlement will be covered in full by its existing claims provisions, which stood at 19.1 million pounds ($26.1 million) at Aug. 31.
The Financial Times had reported in July that Boohoo could face total damages of more than $100 million if the claims brought in a court for the Central District of California succeed, citing lawyers for the claimants.
News of the potential settlement helped to send Boohoo shares 3% higher in early trade.
Boohoo said there was no guarantee that the preliminary settlement will result in a final resolution of the claim, but that the parties will now work together to incorporate the terms into a legally binding settlement agreement. ($1 = 0.7321 pounds)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.