Boohoo agrees final settlement for California Lawsuit

Fast-fashion business Boohoo Group has announced that it has agreed a "final settlement" for a Class Action Claim that was filed in a Californian court in 2020, with no admission of liability.

The lawsuit, filed in the United States District Court for the Central District of California, alleged that that the company had advertised products from a number of its brands, such as PrettyLittleThing, at discounted prices based on false references prices, misleading customers.

In the new update the group highlighted that the settlement is "without admission of liability and is consistent with the guidance of 4 November 2021". Boohoo added that the settlement would be covered in full by its existing legal provisions which were £17.8 million in February 2022.

While the settlement remains subject to review and approval by the District Court, at the time of writing Boohoo's market shares were down 4.77%.

In the statement released in November 2021 Boohoo stated that the Group was “close to settlement”. Following this announcement the group's shares increased by 4% in early trade.