Jessica Alba’s Honest Co. Slapped With Lawsuit Over Alleged COVID-Related Fraud

Jessica Alba’s Honest Co. Slapped With Lawsuit Over Alleged COVID-Related Fraud

Jessica Alba’s Honest Co.

, Slapped With Lawsuit, Over Alleged COVID-Related Fraud.

Jessica Alba's Honest Co.

Is being sued by shareholders who claim they were misled by the company.

Jessica Alba's Honest Co.

Is being sued by shareholders who claim they were misled by the company.

According to 'TMZ,' shareholders claim the company failed to disclose that its 2020 financial reports may have been misleading.

In a new lawsuit, shareholders say they purchased Honest Co.

Stock after the company went public in May, 2021.

.

In a new lawsuit, shareholders say they purchased Honest Co.

Stock after the company went public in May, 2021.

.

At the time, the company's financial reports from 2020 showed blockbuster sales.

'TMZ' explains that so many parents stocked up on Honest Co.

Products at the onset of the pandemic that sales in subsequent quarters tanked.

'TMZ' explains that so many parents stocked up on Honest Co.

Products at the onset of the pandemic that sales in subsequent quarters tanked.

Two months later, Honest Co.

Released a report saying the company lost $20 million in the second quarter of 2021.

Stock prices dropped nearly 43% from the public offering price.

Shareholders claim Honest Co.

Hid the fact that consumers had stockpiled diapers, wipes and other wellness products due to the pandemic.

While Honest Co.

Disclosed that COVID-19 was a driver of high sales, and there was no assurance that would continue.

Shareholders say the company actually knew that sales were already declining but didn't disclose that information when going public.

Shareholders say the company actually knew that sales were already declining but didn't disclose that information when going public