The Beauty Health Company (SKIN) Securities Fraud Class Action

The litigation focuses on the propriety of Beauty Health’s disclosures and omissions pertaining to its HydraFacial Delivery System (“Syndeo”).

The complaint alleges that Beauty Health concealed that: (1) Syndeo 1.0 and 2.0 devices had issues leading to “frequent treatment interruptions;” (2) as a result, the company incurred significant costs to develop enhancements; (3) despite the enhancements, providers continued to experience issues with Syndeo devices; (4) as a result, the company would discontinue marketing Syndeo 1.0 and 2.0 devices and incur significant inventory write-downs; and (5) also as a result, the company’s profitability would be adversely impacted.

Investors began to learn the truth on Aug. 9, 2023, when Beauty Health revealed that its Q2 2023 gross margins was unfavorably impacted by a mix shift toward lower margin refurbished devices as U.S. providers awaited Syndeo enhancements in Q3 2023 to improve user experience.

Then, on Nov. 13, 2023, Beauty Health announced disappointing Q3 2023 financial results. The company said “[t]he quarter was overshadowed by lower-than-expected U.S. revenue and $63.1 million in restructuring charges related to device upgrades of early generation Syndeo devices.” The company further slashed its 2023 net sales guidance and suspended its long term 2025 financial outlook and revealed that its CEO (Andrew Stanleick) would be departing effective Nov. 19, 2023.

This news resulted in Beauty Health shares plummeting over 64% lower on Nov. 14, 2023.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the SKIN securities class-action case about?

This lawsuit on behalf of investors nationwide focuses on the propriety of Beauty Health’s disclosures and omissions pertaining to its HydraFacial Delivery System (“Syndeo”).

WHAT SHOULD I DO?

I worked at SKIN. What should I do?

If you were an employee of SKIN during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or SKIN@hbsslaw.com.

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in SKIN during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any SKIN investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.