NEW YORK, September 17, 2021 / PRNewswire / – Bernstein Liebhard, a leading investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who have purchased or acquired securities of The Honest Company, Inc. (“Honest” or the “Company”) (NASDAQ: HNST) of May 3, 2021 through September 15, 2021 (the “Recourse Period”). The lawsuit filed in United States District Court of the Central District of California alleges violations of the Securities Act of 1934.
If you purchased Honest securities, and / or would like to discuss your legal rights and options please visit Honest Company Inc Shareholder Class Action or contact Rujul patel free of charge at (877) 779-1414 Where [email protected]
According to the complaint, Honest and the offering documents made false and / or misleading statements and did not disclose that: (1) prior to the IPO, the company’s results had been significantly affected by a multi-million dollar COVID-19 action – for products in the Diapers and Wipes category and the Household and well-being category; (2) that at the time of the IPO, the Company was experiencing a deceleration in demand for these products; (3) that, therefore, the financial results of the Company would probably be adversely affected; and (4) that due to the foregoing, the Defendants’ positive statements regarding the business, operations and prospects of the Company were materially misleading and / or lacked reasonable basis.
At May 6, 2021, Honest completed its IPO, selling approximately 26 million common shares for $ 16.00 per share.
At August 13, 2021, Honest announced its financial results for the second quarter of 2021, reporting a net loss of $ 20 million, compared to a net loss of only $ 0.4 million for the second quarter of 2020. Honest revealed that its revenue was only up 3% from the second quarter of 2020 as it was negatively affected by “an estimate $ 3.7 million The impact on inventories of COVID-19, mainly in diapers and wipes during the period of the previous year. 6% from Q2 2020, as consumer and customer demand for disinfection products has declined as consumers get vaccinated and customers manage large inventory levels. ”
Following this news, the Company’s share price fell $ 3.98 per share, or 28%, to close at $ 10.07 per share on August 13, 2021, on an unusually high volume of transactions.
At August 19, 2021, the Company’s share price closed at an all-time low of $ 9.16 per share, a decrease of almost 43% compared to the $ 16.00 IPO price per share.
At the time the complaint was filed, the Honest share price continues to trade below the $ 16.00 per share Offer price, harmful for investors.
If you wish to act as the principal applicant, you must apply to the Court at the latest November 15, 2021. A principal plaintiff is a representative party acting on behalf of the other members of the class to direct the litigation. Your ability to participate in any recovery does not require you to serve as the principal applicant. If you choose not to take any action, you can remain an absent group member.
If you purchased Honest securities, and / or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/honestcompanyinc-hnst-shareholder-class-action-lawsuit-fraud-stock-441/ or contact Rujul patel free of charge at (877) 779-1414 Where [email protected]
Since 1993, Bernstein Liebhard LLP has collected more than $ 3.5 billion for its customers. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and take legal action on their behalf. Due to its success in litigating hundreds of lawsuits and class actions, the firm has been named thirteen times on the National Law Journal’s Plaintiff List and listed in The Legal 500 for ten consecutive years.
LAWYER ADVERTISING. © 2021 Bernstein Liebhard LLP. The law firm responsible for this announcement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this announcement in the State of Connecticut is Michael S. Bigin. Past results do not guarantee or predict a similar result with respect to any future matter.
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SOURCE Bernstein Liebhard LLP