Beauty Health $18 Million Securities Class Action Settlement

Brandon Richards

Legal Content Writer

Published

November 3, 2026 11:03 AM

Updated

November 3, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired The Beauty Health Co. common stock or call options, or sold or otherwise disposed of its put options, between May 10, 2022, and Nov. 13, 2023, inclusive, and suffered damaged as a result.

Additional details

Both individuals and entities can be class members.
Class members include investors who held Beauty Health securities in their own name and through a broker or other nominee.
The beneficial owner, not the record owner, must file the claim, and joint owners must each sign.
Each separate legal entity must submit a separate claim.
Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
Participants in a Beauty Health employee benefit plan the Employee Retirement Income Security Act of 1974 covered should include only transactions made outside the plan.

How much can class members get?

The total settlement fund is $18,000,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The number and type of Beauty Health securities class members purchased, acquired or written
The timing of each purchase and sale
The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery before deductions is about $0.35 per share of common stock, $0.05 per call option underlying share and $0.30 per put option underlying share.
Estimated attorneys' fees, expenses, service awards and administration costs are about $0.12 per share of common stock, $0.02 per call option underlying share and $0.10 per put option underlying share.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate a recognized loss for each Beauty Health security class members bought or wrote during the class period using the court-approved plan of allocation:

Alleged artificial inflation is $2.63 per share during the class period.
The lookback average is the average closing price from Nov. 14, 2023, through the sale date (Table 1 on Page 29 of the settlement notice).
Shares sold, call options closed out and put options closed out on or before Nov. 13, 2023, have no recognized loss.
For shares sold from Nov. 14, 2023, through Feb. 9, 2024, the recognized loss is the lesser of $2.63 or the purchase price minus the lookback average.
For shares held as of the close of trading on Feb. 9, 2024, the recognized loss is the lesser of $2.63 or the purchase price minus $2.78, the average closing price during the 90-day lookback period.
For call options held at the close of trading on Nov. 13, 2023, the recognized loss is the lesser of the option's inflation or the purchase price minus its holding value (Table 2 on Page 30 of the settlement notice).
For put options written and still open at the close of trading on Nov. 13, 2023, the recognized loss is the lesser of the option's deflation or its holding value minus the sale price (Table 3 on Page 31 of the settlement notice).
Payments for call and put options are limited to 4% of the net settlement fund.

Claimants with an overall market gain on their class-period Beauty Health trades will have a recognized claim of zero. Recognized claims cannot exceed a claimant's actual market loss.
The settlement administrator will set any recognized loss that calculates to a negative number to zero.
If total recognized claims exceed the fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a Beauty Health securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Jan. 19, 2027.

Settlement administrator's mailing address: Beauty Health Securities Settlement, c/o Stretto, 410 Exchange, Suite 100, Irvine, CA 92602

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings and transaction information, including:

Number of shares or option contracts held at the close of trading on May 9, 2022
Trade dates for purchases and sales from May 10, 2022, through Feb. 9, 2024, for common stock and through Nov. 13, 2023, for options
Number of shares or option contracts purchased or sold, including the strike price and expiration date for options
Total purchase or sale price
Number of shares held at the close of trading on Feb. 9, 2024, and option contracts held at the close of trading on Nov. 13, 2023

Class members must also provide documentation to support their transactions and holdings in Beauty Health securities. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker containing the transactional information found in a confirmation slip

Payout options

Physical check

$18 million settlement fund

The $18,000,000 settlement fund includes:

Settlement administration costs: Up to $250,000
Attorneys' fees: Up to $5,400,000
Attorneys' expenses: Up to $325,000
Service awards to lead plaintiffs: Up to $10,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: Nov. 24, 2026
Fairness hearing: Dec. 9, 2026
Deadline to file a claim: Jan. 19, 2027

When is the Beauty Health securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Beauty Health and two individual defendants made materially false and misleading statements in violation of federal securities laws. The lead plaintiffs claimed these statements artificially inflated the prices of Beauty Health securities and caused investor losses when corrective information entered the market.

Beauty Health denied all allegations of wrongdoing but agreed to settle to eliminate the uncertainty, burden and expense of further litigation.