Michael Kors Outlet Customers Reach $4.9M Class Action Settlement Over Fake Prices

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A $4.9 million class action settlement was reached between Michael Kors LLC and a group consumers who shopped at Michael Kors outlet stores and claim the retailer listed fake sale prices.

A motion for preliminary approval of the Michael Kors class action settlement was filed in a New York federal court on Friday.

The Class Members say that the court should approve the deal because it “provides substantial relief for the settlement class, and the terms of the settlement are well within he range of reasonableness and consistent with applicable case law.”

The plaintiffs say that the $4,875,000 that the two parties have agreed on is a significant settlement for the Class Members and a “testament to the reasonableness and fairness of the settlement.”

This class action settlement is for “all consumers who purchased Michael Kors Outlet Products from a Michael Kors Outlet Store” from July 25, 2010 through July 25, 2014.

“The recovery falls well within the range of reasonableness given the significant risks inherent with litigating false advertising outlet store cases,” the plaintiffs told the New York federal judge.

They add that “cases against outlet stores alleging false product pricing are a relatively new phenomenon, meaning there is no extensive body of case law governing applicable damages models.”

Michael Kors outlet store consumers alleged in their class action lawsuit that the retailer deceived and misled its customers by giving them the impression that they were being sold products with deeply discounted prices, and that the products they were purchasing “were formerly sold or offered at a higher price at main line retail stores and are now significantly cheaper at the outlet stores.”

They claimed in their Michael Kors Outlet Store class action lawsuit that the prices placed on the price tags at the Michael Kors Outlet Stories “were artificial, arbitrary and did not represent a bona fide price at which Michael Kors formerly sold the Michael Kors Outlet Products.”

In addition to the monetary relief offered to Michael Kors outlet store consumers, the company “has agreed for all of its United States outlet stores to cease the very practice a the heart of” their allegations.

Michael Kors will “modify its price tags, as well as provide in-store displays with explanations of pricing terms, making it easier for customers to understand the value of what they are purchasing.”

In order to receive a benefit from this class action settlement, the parties have agreed to streamline the process, for the sake of the Class Members, as much as possible.

“To participate, claimants need only submit online or by mail a Claim Verification Form verifying that they purchased Michael Kors Outlet Products during the Class Period,” the motion explains.

Class Members will not need to submit a proof of purchase in order to benefit from this class action settlement.

“However, those claimants that do have receipts may be entitled to receive a higher distribution depending upon the amount of their purchases,” the motion for approval of the deal explains.

The plaintiffs are represented by Wayne Scott Kreger of the Law Offices of Wayne Kreger, Jason Alperstein, Jeffrey M. Ostrow and Scott A. Edelsberg of Kopelowitz Ostrow PA and Jeffrey D. Kaliel and Hassan A. Zavareei of Tycko & Zavareei LLP.

Michael Kors is represented by Leslie Gordon Fagen, Darren Wright Johnson and Walter Rieman of Paul Weiss Rifkin Wharton & Garrison LLP.

The Michael Kors Outlet Store Class Action Lawsuit is Gattinella v. Michael Kors (USA) Inc. et al., Case No. 1:14-cv-05731, in the U.S. District Court for the Southern District of New York.

UPDATE: On June 6, 2016, Top Class Actions viewers who submitted timely and valid claims for the Michael Kors settlement began receiving checks worth as much as $170.04.