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Boohoo founders fight to avoid submitting evidence in U.S. proceedings – News

Boohoo co-founder Mahmud Kamani is involved in a dispute over whether online retailers must file evidence in a $ 100 million lawsuit alleging that they used fake promotions to mislead shoppers. I did.

Aim listed companies and other brands Pretty Little Thing and Nasty Gal have been accused of fraudulent pricing for at least four to five years of fake sales and promotions in the United States.

The debate over whether Boohoo’s executive chair Kamani has to answer a lawyer’s question in testimony can be embarrassing to the company by lifting the lid on the internal mechanics. An email from Kamani to staff and executives was disclosed in a document filed in a court in Los Angeles last week.

This incident is the latest threat to Boohoo’s reputation and Supply chain workers are treated And for some of that ad.

Pricing claims contained in a lawsuit filed in Central California last year offer significant discounts to US customers based on bulging or “fake” original prices that Boohoo rarely had at previous prices. We are focusing on the claim that we provided the customer asking us to pay.

Boohoo has previously stated that it intends to defend the proceedings, but declined to comment on the latest developments.

Plaintiffs’ lawyers in consumer class actions have previously been accused by the UK Advertising Standards Office of misleading discount claims and the use of a “countdown clock” to encourage people to buy before the discount ends. It states. If the claim is successful, a total of over $ 100 million in damages will be claimed.

Kamani has his own direct knowledge of the facts related to their claims, citing an email sent to staff in 2019 when he personally managed a brand launch marketing campaign in Australia. He said he needed to provide proof.

They said the email was evidence of the “same false pricing tactics” alleged in the California case.

In an email, Kamani questioned the company’s marketing strategy in Australia. He writes: .. ..[branding]Advertise without large offers. .. .. We want to sell for sale sale. .. .. I’m not interested in other bollocks. “

He also instructed staff to “display large offers on the screen,” and said that all marketing spending was to be approved directly by him.

“I want to see and approve every penny cent,” he wrote. “We do this my way … how it works,” he added.

Carol Kane, co-founder of Kamani, and John Little, CEO of Bhufu, have both been copied to the email chain.

Boohoo, who failed in an attempt to bring the proceedings out of court in November, opposed plaintiffs’ request for Kamani to answer their questions.

The company claims that he “usually is not involved in pricing individual products or making advertising decisions,” and that more junior staff who know the campaign directly need to testify instead. did.

If Kamani needed to answer the question, the court added that this should be limited to two hours.

The 2019 communication is reminiscent of the email revealed in UK report on supplier treatment by Boohoo, Was released last year. In the report, investigative senior lawyer Alison Levitt quoted a 2018 email from Kamani to Boohoo’s senior manager. “We are confused and need to be fixed … I now want to attend all the internal meetings you have with your buyers,” he writes. .. .. I want to get rid of our actions. “

Levitt concludes, “It’s clear that Mr. Kamani has a strong personality, and he is not always aware of the impact this has on others.”

Boohoo founders fight to avoid submitting evidence in U.S. proceedings

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