boohoo Group PLC has moved closer to settling a US class action claim about misleading customers.
The claim brought against the group in California alleged that some of its brands, including Pretty Little Thing, had been offering discounts based on incorrect original prices.
READ: boohoo a stronger business than it was a year ago, says broker as it upgrades to ‘buy’
The fast-fashion retailer said on Thursday that both sides have agreed the terms of a preliminary settlement, which will be covered in full by provisions disclosed in its latest accounts.
It added: “Whilst there is no guarantee that the preliminary settlement will result in a final settlement of the claim, the parties will now work together to incorporate the terms of the preliminary settlement into a legally binding settlement agreement.”
In its half year results in September it said it had set aside GBP19.1mln for claims, although this figure is believed to include other items as well.
Shares rose 6% to 196.25p on Thursday afternoon.