Global e-tailer, Boohoo, is potentially facing a £ 100 million lawsuit after ‘poor working conditions’ and ‘low rates of pay’ in its Leicester factories caused the company’s value to plummet by £ 1.1 billion.
Following the company’s value decline of over £1 billion due to 2020 claims of modern slavery, shareholders, including Sovereign wealth funds and local authorities, are planning to sue Boohoo, according to The Times.
The Sunday Times published an article in 2020 exposing the claims of forced labour in Boohoo’s factories, which resulted in financial losses for stockholders. The “allegations about poor working conditions and low rates of pay in many Leicester factories are not merely well-founded but substantially true,” according to an independent confirmation later provided by Barrister Alison Levitt KC.
A potential class action suit against Boohoo could reach the High Court if a settlement is not reached. However, according to the publication, no claim has yet been filed against Boohoo.
A spokesman for Boohoo commented, “Formal claim relating to this matter has not been made. If any proceedings are issued in relation to this matter, they will be robustly defended.”
