The Honest Company, the household goods and wellness brand founded by actress Jessica Alba, was hit with a securities class action Wednesday in California Central District Court in connection with the company's 2021 IPO. The suit, brought by Glancy Prongay & Murray, also names certain officers and directors of the company and the offerings' underwriters, including J.P. Morgan Securities, BofA Securities and Citigroup. The suit contends that Honest failed to disclose that its pre-IPO financial results were inflated by consumers stocking up on certain products during COVID-19 and that growth would not be sustained. Counsel have not yet appeared for the defendants. The case is 2:21-cv-07405, Dixon v. The Honest Company Inc. et al.
Banking & Financial Services
September 16, 2021, 5:12 AM