Investors Say the Beauty Health Company (SKIN) Concealed Issues with Syndeo Devices – Hagens Berman
SAN FRANCISCO - Hagens Berman urges The Beauty Health Company (NASDAQ: SKIN) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact the firm’s attorneys.
Class Period: May 10, 2022 – Nov. 13, 2023
Lead Plaintiff Deadline: Jan. 16, 2024
Contact An Attorney Now: SKIN@hbsslaw.com, 844-916-0895
The Beauty Health Company (NASDAQ: 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.
“We’re focused on investors’ losses and are investigating whether Beauty Health may have misrepresented the true extent of its Syndeo problems,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Beauty Health and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now.
If you’d like more information and answers to frequently asked questions about the Beauty Health case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Beauty Health should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email SKIN@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.