Jessica Alba’s Honest Co. Being Sued by Shareholders!
Shareholders of Jessica Alba’s Honest Co. are very upset with the starlet misled them by failing to disclose so many parents stocked up on diapers and other Honest products at the beginning of the pandemic that sales in subsequent quarters tanked. Get more details on Jessica Alba’s Honest Co. being sued.
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CelebnMusic247.com asks is this Jessica Alba‘s fault? Hell no, if people were stupid enough to horde diapers during the COVID pandemic that is on them.
Sorry shareholders but things like this happen when the country goes insane and hordes everything from paper towels, toilet paper, cat food, diapers and etc…
According to TMZ, shareholders claim in a new lawsuit they bought Honest stock after the company went public in May, 2021 because the financial reports from 2020 showed gangbuster sales.
Just 2 months later, Honest released a report saying they lost $20 million in the second quarter of 2021, and stock prices plummeted nearly 43% from the public offering price.
The shareholders claim Honest hid an essential fact. See, consumers had stockpiled diapers, wipes and other wellness products because of the pandemic, and by the time the company went public Honest knew sales were falling in a big way.
Now the shareholders do concede … Honest disclosed that COVID was a driver of high sales and there was no assurance that would continue.
Shareholders say Honest actually KNEW sales were declining but didn’t ante up the info.