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Investigation
08/13/2021
Initial Lawsuit
09/15/2021
Lawsuit Progression
01/26/2022
Plaintiff brings this securities class action on behalf of persons and entities that purchased or otherwise acquired The Honest Company common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the company’s May 2021 initial public offering (IPO).
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(1) that, prior to the IPO, the company’s results had been significantly
impacted by a multimillion-dollar COVID-19 stock-up for products in the Diapers and Wipes category and Household and Wellness category;
(2) that, at the time of the IPO, the company was experiencing decelerating demand for such products;
(3) that, as a result, the company’s financial results would likely be adversely impacted; and
(4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
