Ann Taylor Reaches $6M Fake Discount Class Action Settlement

The parent company of Ann Taylor, Ann Inc., agreed to pay $6.1 million to settle class action claims that the clothing retailer used fake discount prices to dupe consumers into thinking they were getting deals at outlets and factory stores.

Lead plaintiffs alleged in their class action lawsuit that they and other consumers were fooled into thinking that the discounted prices at Ann Taylor outlets and factory stores were great deals on clothing that would have been sold at a much higher price in retail stores.

However, alleged the Ann Taylor class action, the “marked down” prices listed on the merchandise were phony and the clothing had never been offered for sale at the higher prices.

The Ann Taylor class action lawsuit alleged the “phantom” discounts violated California’s consumer protection and false advertising laws, Pennsylvania consumer protection laws and other state laws. The plaintiffs alleged that they and other shoppers never would have purchased the clothing and merchandise had they known it was not actually being offered at the discounted price advertised by Ann Taylor.

A federal judge approved the preliminary settlement agreement last week. Under the terms of the settlement, Ann Taylor will pay $5.1 million in the form of vouchers and $500,000 in cash to Class Members. Additionally, $500,000 will be paid for administration of the class action settlement.

“The common legal and alleged factual issues here predominate over individualized issues and resolution of the common issues for thousands of members of the settlement class in a single, coordinated proceeding is superior to thousands of individual lawsuits addressing the same legal and factual issues,” noted the order approving the Ann Taylor class action settlement.

Class Members, according to the preliminary settlement document, will include “all persons identified in ANN’s business records as of April 18, 2017, who, from May 5, 2012 to May 4, 2016, purchased one or more items from Defendant’s Ann Taylor Factory or LOFT Outlet Stores offered at a discount from a regular or original price.”

Notice will be provided to Class Members through email and direct mail notice.

A final hearing on the Ann Taylor class action settlement will be held on March 15, 2018. Members of the class who wish to be excluded from the settlement must submit their request by Feb. 13, 2018. Objections to the class action settlement must be filed no later than March 8, 2018.

Anne Taylor is the latest in a chain of clothing retailers hit with class action lawsuits over “phantom” pricing schemes. Just last year, retail giant agreed to settle a similar class action over its discount scheme for $50 million. In 2015, Michael Kors settled a class action for nearly $5 million.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The Class is represented by Joseph P. Guglielmo and Erin Green Comite of Scott & Scott Attorneys at Law LLP and Todd D. Carpenter, Gary Lynch and Edwin J. Kilpela of Carlson Lynch Sweet Kilpela & Carpenter LLP.

The Ann Taylor False Discount Class Action Lawsuit is Morrow, et al. v. Ascena Retail Group Inc., et al., Case No. 1:16­-cv-­03340, in the U.S. District Court for the Southern District of New York.

UPDATE: January 2018, the Ann Taylor fake discount class action settlement is now open. Click here to file a claim.

UPDATE 2: On Oct. 15, 2018, Top Class Actions viewers started receiving checks in the mail from the Ann Taylor fake sale class action settlement worth $6.84. Congratulations to everyone who filed a claim and got PAID!