ACCESSWIRE
02 Aug 2022, 22:01 GMT+10
PHILADELPHIA, PA / ACCESSWIRE / August 2, 2022 / Kaskela Law LLC announces that it is investigating The Honest Company, Inc. ('Honest' or the 'Company') (NASDAQ:HNST) on behalf of the Company's long-term investors.
In May 2021, Honest completed its initial public offering ('IPO') of common stock, selling over 29.6 million shares of stock to investors at a price of $16.00 per share. According to a recently filed shareholder complaint, at the time of the IPO, Honest failed to disclose to investors that its customers had panned one of Honest's recently launched products, the Clean Conscious Diaper. Additionally, the complaint alleges that Honest failed to disclose the negative impact on the Company of consumers' stock-up of Honest products in response to the COVID-19 pandemic.
As further detailed in the complaint, on June 16, 2021, Honest reported the Company's first quarter 2021 financial results. Honest's revenue in its Company's Diapers and Wipes category was down, and the Company recorded a $4.5 million net loss in the first quarter of 2021 as compared to net income of $0.6 million in the first quarter of 2020. On this news, the Company's stock price fell $1.30 per share, or 7% to close at $16.35 on June 17, 2021.
Then, on August 13, 2021, Honest issued a press release reporting the Company's second quarter 2021 financial results and a net loss of $20 million for the second quarter 2021 as compared to a net loss of only $0.4 million for the second quarter of 2020. The Company noted its revenue grew only 3% as compared to the second quarter of 2020 because it was negatively impacted by 'an estimated $3.7 million COVID-19 stock-up impact primarily in Diapers and Wipes in the prior year period.' On this news, the Company's stock price fell $3.98 per share, or 28%, to close at $10.07 per share on August 13, 2021.
The investigation seeks to determine whether the members of Honest's board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct
Current Honest stockholders who purchased or acquired shares of the Company's stock prior to June 16, 2021 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750, or by email ([email protected]) or online at https://kaskelalaw.com/cases/the-honest-company-inc/ , for additional information about this investigation and their legal rights and options.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation, and has helped recover in excess of $100 million on behalf of victimized investors. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
[email protected]
Adrienne Bell, Esq.
[email protected]
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 - 1740
(484) 229 - 0750
www.kaskelalaw.com
This notice may constitute attorney advertising in certain jurisdictions.
SOURCE: Kaskela Law LLC
Get a daily dose of Raleigh Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Raleigh Times.
More InformationSTOCKHOLM, Sweden: Swedish lithium-ion battery producer Northvolt announced this week that it would build a $5.2 billion gigafactory in the ...
SACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food ...
BEIJING, China: In a deal worth US$10 billion at list prices this week, state-owned carrier China Eastern Airlines announced that ...
BEIJING, China: This week, China Evergrande Group said its founder and chairman, Hui Ka Yan, is being investigated over suspected ...
RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...
SEATTLE, Washington: As part of Washington's efforts to stop Big Tech from monopolizing the most lucrative parts of the internet, ...
TALLAHASSEE, Florida: The Florida Lottery said this week that the second-largest lottery winner in U.S. history has come forward to ...
VICTORIA, Texas: This week, U.S. District Judge Drew Tipton in Victoria, Texas, ruled that President Joe Biden did not have ...
EL PASO, Texas: Over the weekend, Oscar Leeser, Mayor of El Paso, said that the surge in migrants crossing the ...
(Photo credit: Joe Nicholson-USA TODAY Sports) A day after strongly calling out the team's commitment to winning, Seattle Mariners catcher ...
(Photo credit: Rick Osentoski-USA TODAY Sports) The top seven teams in The Associated Press Top 25 remained unchanged from last ...
(Photo credit: Stephen Brashear-USA TODAY Sports) Entering the final day of the regular season, this is what is known: The ...