Textile firm Welspun India has received preliminary court approval for settlement of its litigation in the US with regards to labelling and marketing of Egyptian cotton products. In May this year, Welspun India had announced that company and its subsidiaries, which have been facing litigation in the US surrounding its premium cotton home textile products, have entered into a settlement agreement in the US.

The settlement agreement provides monetary payments to settlement class members not exceeding $36 million (about Rs 250 crore). The company has agreed to increase payouts to individual settlement class members without increasing the aggregate $36 million settlement cap.

As per statutory procedure, the settlement agreement is subject to final approval and review by the appropriate courts in the USA. Welspun had reported a consolidated loss of Rs 78.43 crore for the quarter ended March 31, 2019, due to exceptional expense of Rs 224.01 crore related to settlement of litigation in the US with regards to labelling and marketing of Egyptian cotton products.