Honest Co. $27.5M Securities Class Action Settlement

Consumers who purchased or otherwise acquired The Honest Co. Inc. publicly traded common stock related to the company's initial public offering (IPO) before Aug. 19, 2021, may qualify to claim a payment from a $27.5 million class action settlement.

The Honest Co. Inc. agreed to pay $27,500,000 to settle a class action lawsuit alleging its IPO offering documents contained false or misleading statements and omissions about the business and its product launches and financial condition.

Who is eligible for an Honest Co. payout?

Class members must meet all of the following criteria:

• They purchased Honest’s publicly traded common stock in relation to the offering documents for Honest’s IPO before Aug.19, 2021.
• Alternatively, they acquired ownership of a trading account, retirement account or similar investment account or portfolio containing Honest’s publicly traded common stock in relation to the offering documents for Honest’s IPO before Aug. 19, 2021.
• They were damaged by these purchases or acquisitions.

How much is the securities payout?

Pro Rata Payment: The estimated average recovery is approximately $0.41 per eligible share before deductions and $0.26 per eligible share after deductions. The actual amount each class member receives depends on the valid number of claims submitted, the number of eligible shares each claimant purchased or acquired and the timing of the purchases, sales and holdings.

How to claim an Honest Co. class action rebate

To receive a settlement payment, class members can file a claim online or download, print, complete and mail the PDF claim form to the settlement administrator. Those with multiple accounts, must file a separate claim form for each account. The claims deadline is July 14, 2025.

Settlement administrator's mailing address: In re The Honest Company, Inc. Sec. Litig., c/o Epiq, P.O. Box 5619, Portland, OR 97228-5619

Required proof and documentation

• Class members must supply the last four digits of their Social Security number or Taxpayer Identification Number.
• Claimants must also provide documentation of their transactions in Honest publicly traded common stock.
• Acceptable proof includes broker trade confirmations or other records showing purchases, acquisitions, sales and holdings.
• For each purchase, acquisition or sale, class members must list the date, number of shares and price and attach supporting documents.

• Claimants must also provide documentation of their holdings as of the close of trading on Oc. 1, 2021.

Payout options

Eligible claimants will receive a paper check to the address provided.

$27.5 million Honest Co. stockholder settlement fund

The $27,500,000 settlement fund covers.

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $8,250,000
• Attorneys' expenses: Up to $1,725,000
• Service award to class representative: To be determined
• Payments to eligible class members: The remainder of the settlement fund

Important dates

• Claim Deadline: July 14, 2025
• Fairness Hearing: July 28, 2025

When is the securities class action payout date?

The settlement administrator will distribute payments to authorized claimants after all claims have been processed and the court approves the settlement. 

Why was there a class action settlement?

The class action lawsuit alleged The Honest Co. Inc. and related defendants made false or misleading statements and omissions in the offering documents for its IPO. Investors claimed these misrepresentations caused them financial harm.

The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the burden, expense and uncertainty of further litigation.

Sources

1. Settlement Notice