(Reuters) – Boohoo Group PLC said on Thursday that it has agreed to the terms of a preliminary settlement with parties that brought a US class action lawsuit alleging that the British online fashion store in California misled shoppers.
The company, which sells clothing, footwear, accessories and beauty products, said the preliminary settlement will be fully covered by its existing claims settlement, which amounted to £ 19.1 million ($ 26.1 million) on 31 August.
The Financial Times had reported in July that Boohoo could face a total of more than $ 100 million in damages if the lawsuits filed in a central California district court succeed, citing attorneys' attorneys.
News of the potential settlement helped send Boohoo shares 3% higher in early trading.
Boohoo said there was no guarantee that the preliminary settlement would result in a final settlement of the claim, but that the parties would now work together to incorporate him into a legally binding settlement agreement.