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The company, which sells clothing, shoes, accessories and beauty products, said the preliminary settlement will be covered in full by its existing claims provisions, which stood at 19.1 million pounds ($26.1 million) at Aug. 31.
The Financial Times had reported in July that Boohoo could face total damages of more than $100 million if the claims brought in a court for the Central District of California succeed, citing lawyers for the claimants.
News of the potential settlement helped to send Boohoo shares 3% higher in early trade.
Boohoo said there was no guarantee that the preliminary settlement will result in a final resolution of the claim, but that the parties will now work together to incorporate the terms into a legally binding settlement agreement. ($1 = 0.7321 pounds)
