Boohoo share price rises as company close to settling US legal claim
Boohoo Group has released a statement stating that it is “close to settlement” regarding a Class Action Claim that was filed in a US court last year, sending its share price up.
Boohoo’s shares increased by 4% in early trade yesterday, while at the time of writing they were up by 1.61%.
A statement issued to the London Stock Exchange said: “Boohoo is pleased to report that the parties have notified the District Court that they have agreed to the terms of a preliminary settlement relating to the Claim.
“The preliminary settlement will be covered in full by the existing provisions disclosed in the Group's latest published accounts.
“Whilst there is no guarantee that the preliminary settlement will result in a final settlement of the Claim, the parties will now work together to incorporate the terms of the preliminary settlement into a legally binding settlement agreement.”
The lawsuit, filed in the United States District Court for the Central District of California, alleged that that the company had advertised products with from a number of its brands including PrettyLittleThing and Nasty Gal at discounted prices based on false references prices, misleading customers.
