A lawsuit was filed on behalf of investors in The Honest Company, Inc. (NASDAQ:HNST) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/30/2021 -- An investor, who purchased shares of The Honest Company, Inc. (NASDAQ: HNST), filed a lawsuit over alleged violations of Federal Securities Laws by The Honest Company, Inc. in connection with the Company's May 2021 initial public offering ("IPO").
Investors who purchased shares of The Honest Company, Inc. (NASDAQ: HNST) have certain options and for certain investors are short and strict deadlines running. Deadline: November 15, 2021. NASDAQ: HNST investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Los Angeles, CA based The Honest Company, Inc. manufactures and sells baby, personal, and beauty care products.
On or about May 5, 2021, The Honest Company, Inc. sold about 25.8 million shares of stock in its initial public stock offering (the "IPO") at $16 a share, raising nearly $413 million in new capital.
On Wednesday, August 13, 2021, The Honest Company, Inc. released its second quarter ended June 30, 2021, financial results. The Company posted a net loss of $20.2 million, or 17 cents a share, for the quarter, after a loss of $375,000, or 1 cent a share, in the year-earlier period.
Shares of The Honest Company, Inc. (NASDAQ: HNST) declined to as low as $9.05 per share on August 18, 2021.
The plaintiff alleges on behalf of investors, who purchased The Honest Company, Inc. (NASDAQ: HNST) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's May 2021 IPO, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Registration Statement was materially false and misleading and omitted 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, that, at the time of the IPO, the Company was experiencing decelerating demand for such products, that, as a result, the Company's financial results would likely be adversely impacted, and 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.
Those who purchased shares of The Honest Company, Inc. (NASDAQ: HNST) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.