Boohoo has announced it has agreed a settlement “without admission of liability” in relation to the class action settlement brought forward against it in the US.
The claim, brought forward in California, argued that Boohoo had run promotions claiming to give discounts on items that had already had their prices increased for the US market – leading to the promotions being classed as “misleading”.
It is thought that the settlement will be covered by its existing claims provision, which according to its most recent accounts was £19.1m.
It also revealed the settlement still remains subject to approval from the District Court.
In an update, 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 United States District Court for the Central District of California, the group is pleased to confirm that the parties have reached a final settlement.
“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 Settlement remains subject to review and approval by the District Court.”