Manchester-based online fashion giant Boohoo said on Tuesday it reached a final settlement over a US class action claim alleging Boohoo’s promotions in California misled shoppers.
Boohoo’s brands include PrettyLittleThing and Nasty Gal.
Boohoo shares fell as much as 6% on Wednesday and are down about 77% for the past 12 months.
“Further to the RNS published on 4 November 2021, when the group reported that it had agreed terms of a preliminary settlement relating to a class action claim brought against the group in the United States District Court for the Central District of California … the group is pleased to confirm that the parties have reached a final settlement,” said Boohoo.
“The settlement is without admission of liability and is consistent with the guidance of 4 November 2021, being within the group’s existing legal provisions disclosed in its latest published audited accounts.
“The settlement remains subject to review and approval by the District Court.”
Andrew Wade, an analyst at Jefferies, said it was a “marginal positive to have the issue resolved and covered by existing provisions.”