The Home Depot (NYSE:HD) shares advanced Wednesday, after agreeing to a nearly-$2-million settlement in a case that alleged it overcharged customers, charging more for items at checkout than the items’ advertised prices.
As described by prosecutors in six California counties that sued the world’s largest home improvement retailer in San Diego County Superior Court, “scanner violations” — when prices on items or on the items’ shelf tags are not the same once barcodes are scanned during checkout — resulted in higher prices for customers.
In an emailed statement responding to a request for comment about the settlement, Home Depot said, “To ensure consistency for our customers, we’ve updated the timing of our price changes.”
The settlement, which does not include any admission of wrongdoing, was announced last week and approved by Judge Richard S. Whitney; the filing was made Aug. 26.
Los Angeles County District Attorney George Gascón, representing his office as a lead plaintiff, suggested in a statement last week that the price discrepancies were not an oversight.
“When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently,” he said.
Shares in the home repair retailer took on 58 cents at the outset Wednesday to $383.82.