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40mn ago- Telegraph
Top executives at Boohoo are set to be quizzed by lawyers after judges rejected the retailer’s attempt to dismiss a $100m (£75m) legal action over “fake” discounts.
The fast fashion retailer is accused of offering big discounts to customers based on inflated original prices which were almost never the prices it had previously asked customers to pay.
Manchester-based Boohoo and its subsidiaries PrettyLittleThing and Nasty Gal failed this month to persuade judges to throw out the class action lawsuit.
The court sided with the lawyers bringing the legal claim but reserved judgment on one technical legal argument about whether it has jurisdiction over the parent company in the Boohoo group.
The US lawyers behind the claim said they now expect to take testimony from Boohoo’s executives and high-ranking managers.
Neil Catto, Boohoo’s chief financial officer, is among those expected to face questioning as he provided evidence to support the company’s bid to have the case dismissed.
Ahmed Ibrahim of AI Law, one of the lawyers leading the claim, said: “Boohoo, PrettyLittleThing and Nasty Gal need to find a new business model where they shoot straight with their customers.
“They should admit what they’ve been doing is wrong, issue refunds to the customers they have misled, and put a stop to the fake sales and false advertising.”
The case is the latest reputational risk for Aim-listed Boohoo after scrutiny of the treatment of workers in its supply chain.
Auditors from PwC are preparing to stand down after the furore but Boohoo has so far failed to announce a replacement with most of the UK’s large audit firms ruling themselves out of the running for the vacancy because of conflicts of interest or reputational concerns.
A Boohoo spokesman said it intends to rigorously defend the legal claims but would not comment further on the case.
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Guys sorry if i'm being naive, but why don't the share price goes up massively with such good news? I mean, MS surely know what they are doing!
@Moose2010
But they have changed their assessment to NEUTRAL....so the sentiment somehow improves
Guys, do you think that if the appointed auditor isn't EY this could have a negative impact on the SP?
@usually_right: sources for HSBC & RBC broker forecast?
Is it normal to expect broker ratings after results then? I was not aware of that
Could not resist a cheeky top-up @368p
F*****g joke! Boohoo growth is 45% in a global market crying for money....and yet it goes down. Another 2020 non-sens!
385p unchanged for me - much room for 15% upside tomorrow...
UT trade, guys seriously ? Go away...
Agree, source please??
If gains are made within an ISA, then they are tax free right? (But can only top it up 20k per year)
Bargain at 381p, can't wait to see the results on Wed!
I'll be more conservative in view of all the economic trouble in Europe and US, I'll go for 35%, which is still amazing IMO
Thanks guys! I've just checked and so far we are 45% up YoY, so BOO seem to have been very conservative with only 25% growth in revenue by Feb 2021...In fact, even if their revenue was to halve until Feb 2021, they would still be ahead of guidance - am i right?
What is Boohoo guidance/ expectations for the results to come?
On their website (boohooplc.com) they mention that the terms of the investigation will be made available by the end of July, i.e. this week, but also mentioned the date was "indicative"...So as much as we can expect one, that's effectively not 100% sure
Thanks for confirming. I hope it can bring the SP back in blue territory although more significant news may be needed for that to happen...
Is it reasonable to expect one by the end of the week ?