The JB Hi-Fi Limited (ASX: JBH) share price is edging higher today despite some bad news.
At the time of writing, the retail giant's shares are up almost 0.5% to $49.23.
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JB Hi-Fi share price higher despite bad news
This morning, JB Hi-Fi confirmed that it has received a writ and statement of claim filed in the Supreme Court of Victoria by Maurice Blackburn Lawyers.
According to the release, the proceedings make claims under the Australian Consumer Law, among other matters, in relation to the sale of extended warranties to consumers. The proceedings seek compensation for loss or damage of an unquantified amount, interest and costs for the lead plaintiff and group members.
Maurice Blackburn Lawyers highlights that the "class action alleges that these extended warranties had little to no value to JB Hi-Fi's customers, because the Australian Consumer Law already gives them the same (and often better) rights to have their goods repaired, replaced, or refunded if they are faulty, without paying for an extended warranty."
It also alleges that JB Hi-Fi used misleading or deceptive conduct or unconscionable conduct in selling the extended warranties. The law firm is seeking compensation for everyone who bought an extended warranty from the retail giant between 1 January 2011 and 8 December 2023.
JB Hi-Fi is refuting the allegations. It advised that it takes compliance with its legal obligations very seriously and considers that it has complied with relevant laws at all times. The retailer intends to vigorously defend the proceedings and will keep the market updated in accordance with its continuous disclosure obligations.
The JB Hi-Fi share price is up 11% over the last 12 months.
