Jessica Alba’s Honest Co. , Slapped With Lawsuit, Over Alleged COVID-Related Fraud.
Jessica Alba's Honest Co. is being
sued by shareholders who claim
they were misled by the company.
Jessica Alba's Honest Co. is being
sued by shareholders who claim
they were misled by the company.
According to 'TMZ,' shareholders claim the company failed to disclose that its 2020 financial reports may have been misleading.
In a new lawsuit, shareholders say
they purchased Honest Co. stock after
the company went public in May, 2021. .
In a new lawsuit, shareholders say
they purchased Honest Co. stock after
the company went public in May, 2021. .
At the time, the company's financial reports
from 2020 showed blockbuster sales.
'TMZ' explains that so many parents stocked up
on Honest Co. products at the onset of the pandemic
that sales in subsequent quarters tanked.
'TMZ' explains that so many parents stocked up
on Honest Co. products at the onset of the pandemic
that sales in subsequent quarters tanked.
Two months later, Honest Co. released a report saying the company lost $20 million in the second quarter of 2021.
Stock prices dropped nearly 43%
from the public offering price.
Shareholders claim Honest Co. hid the fact that consumers had stockpiled diapers, wipes and other wellness products due to the pandemic.
While Honest Co. disclosed that COVID-19 was a driver of high sales, and there was no assurance that would continue.
shareholders say the company actually knew
that sales were already declining but didn't
disclose that information when going public.
shareholders say the company actually knew
that sales were already declining but didn't
disclose that information when going public