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Boohoo hit with £100 million lawsuit over modern slavery claims
https://www.whatjobs.com/news/united-kingdom/uk-business-news/boohoo-hit-with-100-million-lawsuit-over-modern-slavery-claims
By Nithya Bose in UK Business News, posted October 26, 2023
Boohoo is facing a £100 million lawsuit by investors who suffered big losses when the fashion retailer's market value plunged by over £1 billion.
The slump happened due to allegations of modern slavery in its UK factories.
City lawyers are now pursuing compensation for shareholders affected by forced labor claims.
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The claims were first reported by The Sunday Times in 2020 before being verified in an independent review by barrister Alison Levitt KC.
Levitt found “allegations about poor working conditions and low rates of pay in many Leicester factories are not merely well-founded but substantially true”.
She added: “Boohoo’s monitoring of its Leicester supply chain was inadequate and this was attributable to weak corporate governance.”
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No formal claim has been filed against Boohoo but a potential class action lawsuit could escalate to the High Court if a settlement isn't reached.
Boohoo has engaged lawyers at Herbert Smith Freehills to address the potential litigation involving around 100 institutional investors.
A spokesman for Boohoo told The Telegraph: “A 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.”
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