SAN FRANCISCO, Dec. 08, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges The Beauty Health Company (NASDAQ: SKIN) investors who suffered substantial losses to submit your losses now.
The Beauty Health Company (NASDAQ: SKIN) Securities Fraud Class Action:
“We investigating whether Beauty Health intentionally concealed problems with its Syndeo devices from investors,” said Reed Kathrein, the Hagens Berman partner leading the investigation..
The complaint alleges that Beauty Health failed to disclose 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; and (4) as a result, the company would discontinue marketing Syndeo 1.0 and 2.0 devices and incur significant inventory write-downs.
The alleged fraud unraveled on Nov. 13, 2023, when 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.
The complaint alleges an earlier corrective disclosure 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.
Most recently, Beauty Health has experienced several downgrades and price target cuts by leading securities analysts, including Olivia Tong of Raymond James who reportedly stated, “the challenges impacting the company is more severe than we had anticipated.”
If you invested in Beauty Health and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now.
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 [email protected].
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.
Past results do not guarantee future outcomes.
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Reed Kathrein, 844-916-0895
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