ACCESS Newswire
02 Aug 2022, 17:31 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 Hawaii Telegraph 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 Hawaii Telegraph.
More InformationCULVER CITY, California: TikTok is preparing to roll out a separate version of its app for U.S. users, as efforts to secure a sale...
WASHINGTON, D.C.: President Donald Trump claimed he was unaware that the term shylock is regarded as antisemitic when he used it in...
PARIS, France: A strike by French air traffic controllers demanding improved working conditions caused significant disruptions during...
OMAHA, Nebraska: With Congress considering cuts totaling around US$1 trillion to Medicaid over the next decade, concerns are rising...
ROME, Italy: Quick thinking by emergency responders helped prevent greater devastation after a gas station explosion in southeastern...
WASHINGTON, D.C.: President Donald Trump is drawing praise from his core supporters after halting key arms shipments to Ukraine, a...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...