The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of The Honest Company, Inc. (NASDAQ: HNST) who purchased pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s May 2021 initial public offering. The action, which was filed in the United States District Court for the Central District of California, alleges that the Company violated federal securities laws.
In particular, the The Honest Company lawsuit alleges that (1) prior to the Initial Public Offering (“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; (2) at the time of the IPO, the Company was experiencing decelerating demand for such products; (3) as a result, the Company’s financial results would likely be adversely impacted; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Shareholders have until November 15, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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