Online fashion powerhouse Boohoo is confronting the prospect of a $100m lawsuit in the US over claims that consumers were misled with ‘sham Sales’.

A civil claim has been filed against Boohoo by Almadani Law and AI Law, The Telegraph reported. It is alleged that the etailer engaged in misleading pricing through false promotions.

Boohoo has been one of retail’s strongest performers in recent years, helped by its pureplay model, ability to manage product according to demand and a raft of acquisitions such as NastyGal in the US and Karen Millen in the UK.

A Boohoo spokesperson said: “We are focused on bringing our customers designs that they love at affordable prices, and running promotions is just one of the ways that we invest in our customer proposition.”

The retailer has recently come under fire. Last week, for instance, Boohoo acquired the 34% stake that it did not already own in PrettyLittleThing after being targeted by hedge fund ShadowFall.

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