// Boohoo faces $100m (£80m) lawsuit in the US over allegations of false prices
// Lawyers filed a civil claim against the retailer regarding its promotions and pricing
// Boohoo was accused of running “sham sales” and promotions
Boohoo is reportedly facing a $100 million (£81 million) lawsuit in the US over allegations it misled shoppers with “sham sales”.
According to The Telegraph, lawyers from Almadani Law and AI Law in California filed a civil claim against the British online retail giant with allegations it engaged in false pricing through fake sales and promotions.
The civil claim comes within a week of Boohoo Group facing short seller attacks after announcing a £323 million deal to buy out the remaining minority stake in PrettyLittleThing.
Lawyers allege Boohoo ran “sham sales” with discounts on “fake” original prices which were never or almost never the original prices.
Boohoo could suffer damages exceeding $100 million if the claims succeed, said law firms said.
A Boohoo spokesman said the retailer was aware of the civil claim: “We are focused on bringing our customers designs that they love at affordable prices, and running promotions is just one of the ways that we invest in our customer proposition.”