An investigation on behalf of investors in The Honest Company, Inc. (NASDAQ:HNST) shares over potential wrongdoing at The Honest Company, Inc. was announced.
San Diego, CA -- (SBWIRE) -- 10/19/2022 -- An investigation was announced over potential breaches of fiduciary duties by certain directors at The Honest Company, Inc..
Investors who purchased shares of The Honest Company, Inc. (NASDAQ: HNST) and currently hold any of those The Honest Company, Inc. (NASDAQ: HNST shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain Honest Company directors breached their fiduciary duties and caused damage to the company and its shareholders.
On September 15, 2021, a lawsuit was filed against The Honest Company, Inc over alleged violations of Federal Securities Laws in connection with the Company's May 2021 initial public offering ("IPO"). The plaintiff alleged 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 claimed 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.
On February 21, 2021, a consolidated complaint was filed and on March 14, 2021, the Defendants filed a Motion to Dismiss the consolidated Complaint.
On July 18, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
Those who purchased shares of The Honest Company, Inc. (NASDAQ: HNST) have certain options and should contact the Shareholders Foundation.
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