Jessica Alba’s Honest Co. , Slapped With Lawsuit, Over Alleged COVID-Related Fraud.<br />Jessica Alba's Honest Co. is being <br />sued by shareholders who claim <br />they were misled by the company.<br />Jessica Alba's Honest Co. is being <br />sued by shareholders who claim <br />they were misled by the company.<br />According to 'TMZ,' shareholders claim the company failed to disclose that its 2020 financial reports may have been misleading.<br />In a new lawsuit, shareholders say<br />they purchased Honest Co. stock after <br />the company went public in May, 2021. .<br />In a new lawsuit, shareholders say<br />they purchased Honest Co. stock after <br />the company went public in May, 2021. .<br />At the time, the company's financial reports <br />from 2020 showed blockbuster sales.<br />'TMZ' explains that so many parents stocked up <br />on Honest Co. products at the onset of the pandemic <br />that sales in subsequent quarters tanked.<br />'TMZ' explains that so many parents stocked up <br />on Honest Co. products at the onset of the pandemic <br />that sales in subsequent quarters tanked.<br />Two months later, Honest Co. released a report saying the company lost $20 million in the second quarter of 2021.<br />Stock prices dropped nearly 43% <br />from the public offering price.<br />Shareholders claim Honest Co. hid the fact that consumers had stockpiled diapers, wipes and other wellness products due to the pandemic.<br />While Honest Co. disclosed that COVID-19 was a driver of high sales, and there was no assurance that would continue.<br />shareholders say the company actually knew <br />that sales were already declining but didn't <br />disclose that information when going public.<br />shareholders say the company actually knew <br />that sales were already declining but didn't <br />disclose that information when going public
