Manchester ecommerce group, Boohoo, has settled a class action suit in the US, which accused it of inflated prices.
The lawsuit related to its US websites Boohoo, PrettyLittleThing and Nasty Gal. Boohoo was accused of artificially inflating prices and then using markdowns, meaning the company rarely sold items at their original price.
Boohoo denies all the allegations.
According to KCC Class Action Services, the money will be split amongst 9.4m customers, who’ll each receive a $10 gift card, plus free shipping (around $17 per girt card). KCC released a court authorised “notice” to say:
“Plaintiffs contend Defendants have violated various California consumer protection and false advertising laws and have committed fraud. Defendants deny all of the allegations made in the Actions.
“The Court has not determined who is right. Rather, the Parties have agreed to settle the lawsuits to avoid the uncertainties and expenses associated with ongoing litigation.”
Customers eligible for the payout must have been a California resident buying products between April 2016 and June last year.
In its most recent financial results, Boohoo anticipated redemption rates would be lower than $197m and had set aside £17.1m to cover the outcome.
