Boohoo could face modern slavery class action, reports say
Fast fashion giant Boohoo is reportedly facing potential threats of a class action lawsuit by shareholders over modern slavery allegations from 2020, according to reports in the Telegraph.
The allegations of unacceptable working conditions and underpayments, which were eventually verified in an independent review by barrister Alison Levitt KC, wiped off more than £1bn from the company’s value.
Now shareholders are seeking compensation, according to a report in the Telegraph.
The Telegraph reported today that if a settlement is not reached, the “brewing class action” could reach the High Court.
The independent review findings stated Levitt was “satisfied that the allegations about poor working conditions and low rates of pay in many Leicester factories were not merely well-founded but substantially true.”
It added that Boohoo’s Leicester supply chain was “inadequate” due to “weak corporate governance.”
“It capitalised on the commercial opportunities offered by lockdown and believed that it was supporting Leicester factories by not cancelling orders, but took no responsibility for the consequences for those who made the clothes they sold,” the report said.
A spokesman for Boohoo said: ““A formal claim relating to this matter has not been made. If any proceedings are issued in relation to this matter, they will be robustly defended.”