Boohoo founder must give evidence in US case

By

Sandra Halliday

Published
Jul 30, 2021

The founder of Boohoo Group, Mahmud Kamani, who’s executive chairman at the fast fashion company, has been told he has to give evidence in a US lawsuit. 

He had been trying to avoid having to do that in the case that claims the retailer ran false promotions in the US.

The California judge’s ruling means he will now appear via video conference on or before August 15.

The case claims that the online retailer "advertised fake and inflated" prices on its fashion items in order to make US consumers believe that it was offering big discounts on regular prices. 

It's the latest in a series of issues around governance that have plagued Boohoo, including a supply chain scandal in the UK that emerged a year ago. And in late July it was also forced to cut ties with rapper DaBaby following an onstage homophobic rant, just weeks after it had launched a major collection with him.

The reason for Kamani being forced to give evidence is that he’s claim to have "unique personal" knowledge of issues relevant to the lawsuit and that he had a hands-on role as far as pricing and marketing of the brands he controls are concerned. His lawyers had said he didn't have such a role and that other Boohoo staff should give evidence.

The company continues to deny any fraudulent behaviour and said it will "vigorously" defend itself, also citing its "clearly disclosed and highly competitive" prices.