Fast fashion giant Boohoo revealed this morning that it had reached a final settlement without admitting liability in relation to a Californian lawsuit.
The claimants argued that the UK firm had used deceptive promotions to mislead customers, with Boohoo giving so-called “discounts” on items that had already had their prices hiked for US customers.
As previously reported by The Times, the level of class action could have incurred damages in excess of $100m, with Boohoo’s subsidiaries PrettyLittleThing and Nasty Gal also involved in the disagreement.
It is understood that the settlement would be covered by existing claims provision, which according to September accounts, was £19.1m.
The settlement remains subject to review and approval by the District Court.
Shares were still down over two per cent in early morning trading following the news.
The stock has plunged over 75 per cent in the last year as consumers pivot away from fast fashion.