Business

Welspun gets U.S. court nod to settle claims

Welspun India Ltd. has received preliminary U.S. court approval for a settlement agreement to resolve all pending legal claims made against the company in the United States.

These claims concern the past marketing and labelling of its premium cotton home textile products, the company said in a statement.

In 2016, U.S. retail major Target Corporation terminated the product sourcing contract with the company following allegations of supply of products made of inferior cotton as against Egyptian cotton which was promised in the contract. After that, several class action suits were filed in U.S. courts, claiming damages.

“The plaintiffs in other pending litigations involving these issues have also agreed to withdraw their objection to the global settlement and suspended litigation pending the settlement agreement’s final approval,” it said. The firm has also, inter alia, agreed to increase payouts to individual settlement class members without increasing the aggregate settlement cap of $36 million. “Based on expert advice, the provision already made by the company during the quarter ended March 31 remains unchanged and adequate. As per statutory procedure, the settlement agreement is subject to final approval and review by the appropriate courts in USA,” the company said in the statement.

It said over the last three years, the company had addressed the issue by aggressively undertaking various steps to enhance traceability, including the introduction of Wel-Trak, a patented and industry-defining solution, ‘which had helped it us earn stronger trust among customers.’ It also and reiterated the firm’s its commitment towards prioritising customer interest above all.

“We have also increased additional third party assurances, such as vendor audits, and deployed a dedicated resource in Egypt to source Egyptian cotton,” it said.

“With this, Welspun is well equipped to further consolidate its leadership position in the industry and leverage global opportunities in flooring and advanced textiles, as well as the growth of its domestic home textiles business,” it added.


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Printable version | Jun 19, 2021 1:04:34 PM | https://www.thehindu.com/business/welspun-gets-us-court-nod-to-settle-claims/article28275388.ece

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