(Reuters) – Boohoo has reached a final settlement over a US class action lawsuit alleging that the British online fashion store has seduced shoppers in California, it said on Tuesday.
The group, which sells clothes, shoes, accessories and beauty products aimed at 16- to 40-year-olds, had agreed on terms for a preliminary settlement of the measure in November.
Boohoo said the settlement is without liability and within its existing legal provisions, which stood at £ 17.8 million ($ 22.4 million) on 28 February.
The settlement is subject to review and approval by the United States District Court for the Central District of California.
“It must be marginally positive to have the problem solved and covered by existing regulations,”; said analysts at Jefferies.
Shares in Boohoo, however, fell by 4.5%, which increased losses in 2022 to 36%.
The sector was weak with ASOS down 2.4% and Next down 1.7%.
Earlier this month, Boohoo warned that sales growth would slow this year, hit by consumer spending pressures, higher product returns and continued supply chain and delivery problems.