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Boohoo agrees preliminary terms to settle U.S. class action lawsuit -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This illustration, taken on September 30, 2020 by Dado Ruvic shows a woman holding a smartphone that displays the Boohoo App. REUTERS/Dado Ruvic

(Reuters) – Boohoo announced Thursday that it had reached a preliminary agreement with the parties to a U.S. class-action claim that Boohoo’s California promotions misled consumers.

According to the company that sells clothes, footwear, accessories, and beauty products, the preliminary settlement will be fully covered by existing claims provisions. They stood at 19.1million pounds ($26.1 Million) as of Aug. 31.

In July, The Financial Times reported that Boohoo might face more than $100 Million in damages if the Central District of California court hears the case. They cited lawyers representing the plaintiffs.

Boohoo shares rose 3% in the early trading after news of the possible settlement.

Boohoo acknowledged that there’s no way to know if the preliminary settlement will lead to a final settlement, but said that both parties would now come together and work towards a legally binding agreement. ($1 = 0.7321 pounds)

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