Boohoo close to settlement agreement over fraudulent pricing action
Online fashion retailer Boohoo has said it is close to a settlement agreement over a class action about misleading customers on pricing.
A case filed in California alleged that the Manchester based company offered heavy discounts to US customers based on inflated original prices, which allegedly it had never asked customers to pay in the first place.
In an update on Thursday, Boohoo said the parties have notified the court that they have agreed to the terms of a preliminary settlement relating to the claim.
“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 said.
In its accounts published in September, Boohoo said it had made a provision of £19.1m for any legal action.
The retailer’s shares were up almost four per cent on Thursday morning.