Philadelphia, Pennsylvania--(Newsfile Corp. - October 15, 2021) - Berger Montague is investigating securities fraud allegations against The Honest Company, Inc. ("Honest" or the "Company"). The Firm is investigating these claims on behalf of investors who purchased Honest securities (NASDAQ: HNST), on or traceable to the Company's May 2021 initial public offering and between May 3, 2021 and September 15, 2021 (the "Class Period")
If you purchased Honest securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Michael Dell'Angelo at mdellangelo@bm.net or (215) 875-3080.
Whistleblowers: Anyone with non-public information regarding Honest is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Honest, a self-described "clean lifestyle movement" company headquartered in Los Angeles, has three product lines: (1) Diapers and Wipes, (2) Skin and Personal Care, and (3) Household and Wellness. Honest completed its initial public offering in May 2021.
On August 13, 2021, Honest reported a net loss of $20 million for Q2 2021, as compared to a net loss of only $0.4 million for Q2 2020, and disclosed that its revenue grew only 3% on account of "an estimated $3.7 million COVID-19 stock-up impact primarily in Diapers and Wipes in the prior year period." The Company further disclosed that Household and Wellness revenue declined 6% from Q2 2020 "as consumer and customer demand for sanitization products decreased as consumers became vaccinated and customers managed heavy levels of inventory."
On this news, Honest shares fell $3.98 per share, approximately 28%, to a close of $10.07 on August 13, 2021.
A recently filed complaint alleges that the Registration Statement was materially false and misleading and omitted that: (1) 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; and (2) at the time of the IPO, the Company was experiencing decelerating demand for such products.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Michael Dell'Angelo, Managing Shareholder
Berger Montague
(215) 875-3080
mdellangelo@bm.net
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99817
