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Boohoo agrees to settlement following claims of misleading pricing

By Rachel Douglass

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Business

Image: Boohoo

Fast fashion conglomerate Boohoo has announced it has agreed to a final settlement over a US class action lawsuit that claimed it was misleading customers with its pricing.

The case, which was filed in California, alleged that the fashion retailer was offering large discounts on inflated prices to US customers, leading them to believe they were getting greater discounts than they actually were.

In November 2021, Boohoo said it was preparing to agree to a settlement which would be covered in full by its existing claims provisions which were 26.1 million dollars.

In an announcement, Boohoo said: “Further to the RNS published on 4 November 2021, when the group reported that it had agreed terms of a preliminary settlement relating to a class action claim brought against the group in the US District Court for the Central District of California, the group is pleased to confirm that the parties have reached a final settlement.”

It continued: “The settlement is without admission of liability and is consistent with the guidance of 4 November 2021, being within the group’s existing legal provisions disclosed in its latest published audited accounts.”

The retailer said that the settlement was still subject to review and approval by the District Court of California.

Boohoo