UK based online fashion retailer Boohoo Group plc. (LON: BOO) has agreed to a final settlement on a United States class action lawsuit in which the company is accused of running misleading promotions in California.
Boohoo sells shoes, clothes, accessories and beauty products aimed at people aged between 16 to 40 years. The company is being accused of misleading customers using the promotions. Back in November the company had agreed terms for a preliminary settlement of the action.
The company said the settlement is without admission of liability and within its existing legal provisions. As at the end of February the settlement claims were amounting to 17.8 million pounds ($22.4 million).
According to analysts at Jefferies, the settlement move indicates a marginal positive to have the issue resolved and covered by existing provisions. The settlement is subject to review and approval by the United States District Court for the Central District of California.
