PHILADELPHIA, Nov. 27, 2023 (GLOBE NEWSWIRE) — The law firm of Barrack, Rodos & Bacine announces that a class action lawsuit has been filed on behalf of investors in The Beauty Health Co. (NASDAQ: SKIN) who purchased the stock from May 10, 2022 through November 13, 2023 (the “Class Period”).
If you purchased Beauty Health stock during the Class Period and sustained a loss on your investment in Beauty Health, you are encouraged to contact us about your rights in this matter and the possibility of leading this class action lawsuit.
You may contact the firm at this webpage, by calling us 877-386-3304, or via email at investoralert@barrack.com.
In early 2022, Beauty Health, a company focused on “skin health experiences,” launched its Syndeo device, a data connected machine used in dermatological procedures involving chemical exfoliation and the infusion of facial serums. The complaint alleges that during the Class Period, Defendants made false or misleading statements that 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 the Syndeo devices; and (4) as a result, the Company would no longer market Syndeo 1.0 and 2.0 devices and incur significant inventory write-downs, adversely impacting the Company’s financial condition.
Despite issuing positive statements during the Class Period concerning the demand for the Syndeo device and its contribution to the Company’s financial results and guidance, Beauty Health, on August 9, 2023, reported that its gross margins were “unfavorably impacted” by a shift towards refurbished devices as U.S. providers awaited promised enhancements to Syndeo. It also announced that the CFO was leaving the company involuntarily. On this news, Beauty Health’s share price dropped by 5.4%, to close at $7.12 per share.
Then, on November 13,2023, the Company announced restructuring charges of $63 million, including a nearly $19 million write-down due to the obsolescence of its Syndeo 1.0 and 2.0 devices, and a $32 million write-down for the cost of upgrading or exchanging the 1.0 and 2.0 devices. The Company also sharply lowered its guidance for the rest of the year. Moreover, Beauty Health revealed that its CEO would leave the Company and relinquish his board seat.
On this news, shares of Beauty Health fell $2.51 per share, or over 64%, to close at $1.39 per share on November 14, 2023.
If you suffered a loss on your Beauty Health shares, you have until January 16, 2024, to request that the Court appoint you as the plaintiff leading this case. Your ability to participate in any recovery does not, however, require that you serve as lead plaintiff.
For more information about this matter and about Barrack, Rodos & Bacine, please visit the firm’s website.
Philadelphia-based Barrack Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm’s largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.
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