$6.1M Settlement Granted Preliminary Approval in Ann Taylor Deceptive Prices Class Action

Elizabeth DiNardo, Esq. | Associate Counsel


On December 14, 2017 a $6.1 million settlement between women’s retailer Ann Inc. and a class of consumers alleging that the company misrepresented discounts to customers shopping at Ann Taylor and LOFT Factory Outlet Stores was given preliminary approval by New York federal court judge, J. Paul Oetken.

The suit was originally filed on May 4, 2016 by named plaintiffs Siobhan Morrow and Ashley Gennock who alleged that Ann Inc. violated California’s False Advertising Law, Unfair Competition Law and Consumers Legal Remedies Act, as well as Pennsylvania’s Unfair Trade Practices and Consumer Protection Law. Plaintiffs argue that Ann Inc. outlet stores mislead shoppers by labeling items of clothing as discounted from a higher original price when in reality the discounted price is a phantom markdown. The class includes customers who purchased clothing at Ann Taylor Factory or LOFT outlet stores at an artificially discounted price between May 5, 2012 and May 4, 2016.

The defendant retailer has agreed to distribute 425,000 vouchers for $12 usable at both Ann Taylor and Loft stores. The total value for the vouchers is approximately $5.1 million. The company has also agreed to set aside $500,000 for administrative costs, in addition to $1,500 to each named plaintiff, and up to $1.25 million for attorney’s fees.

The case is: Morrow et al. v. Ascena Retail Group Inc. et al., case number 1:16-cv-03340, in the U.S. District Court for the Southern District of New York.

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