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 (abell@kaskelalaw.com) 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.
skaskela@kaskelalaw.com
Adrienne Bell, Esq.
abell@kaskelalaw.com
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 Maryland Leader 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 Maryland Leader.
More InformationZAGREB, Croatia: Authorities have said that a weekend bus crash near Varazdin in Croatia killed 12 passengers and injured 32.The ...
WASHINGTON D.C.: The U.S. will participate in a joint military exercise in mid-October with India, less than 62 miles from ...
SEOUL, South Korea: South Korea has launched a domestically manufactured lunar orbiter that took off from Florida's Cape Canaveral Space ...
MOSCOW, Russia: A leading Russian scientist in the field of hypersonic flight, Dr. Alexander Shiplyuk, has been arrested on suspicion ...
LOS ANGELES, California: During a meeting that was disrupted by protesters this week, the Los Angeles City Council voted to ...
WASHINGTON D.C.: The U.S. Justice Department announced this week that former Puerto Rico governor Wanda Vazquez has been arrested in ...
NEW YORK CITY, New York: After a study released on Wednesday projected a 15 to 20 percent reduction in the ...
MOSCOW, Russia: Financial information released by the Rosstat federal statistics service this week indicated that Russia's economy shrank 4 percent ...
KATHMANDU, Nepal - While the Ministry of Finance has begun repaying interest on the loans for the planes, a batch ...
WASHINGTON D.C.: Providing relief to drivers in the United States, the average retail gasoline price in the US fell below ...
NEW YORK CITY, New York: Walmart could sign a deal with Disney, Paramount, or Comcast, with the aim of breaking ...
MILAN, Italy: Milano Today has reported that seven years after launching in the country, American pizza giant Domino's has now ...