BEAUTY HEALTH INVESTOR DEADLINE APPROACHING

Rhea-AI Summary

Faruqi & Faruqi, LLP Investigating Potential Claims Against The Beauty Health Company (SKIN)

Positive

• None.

Negative

• Allegations of false and misleading statements by the Company and its executives leading to potential profitability impact

Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Beauty Health To Contact Him Directly To Discuss Their Options

If you suffered losses exceeding $50,000 investing in Beauty Health securities between May 10, 2022 and November 13, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/SKIN.

There is no cost or obligation to you.

NEW YORK, Jan. 4, 2024 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against The Beauty Health Company ("Beauty Health" or the "Company") (NASDAQ: SKIN) and reminds investors of the January 16, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that Syndeo 1.0 and 2.0 devices had issues leading to "frequent treatment interruptions;" (2) that, as a result, the Company incurred significant costs to develop enhancements; (3) that, despite the enhancements, providers continued to experience issues with the Syndeo devices; (4) that, as a result, the Company would no longer market Syndeo 1.0 and 2.0 devices and incur significant inventory writedowns; (5) that, as a result, the Company's profitability would be adversely impacted; and (6) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On August 9, 2023, before the market opened, Beauty Health announced that second quarter 2023 gross margin was "unfavorably impacted" by a mix shift "toward lower-margin refurbished devices . . . as U.S. providers awaited Syndeo enhancements in the third quarter 2023 to improve user experience." The Company also announced the "involuntary separation without cause" of Chief Financial Officer ("CFO") Liyuan Woo.

On this news, the Company's shares fell $0.41, or 5.4%, to close at $7.12 per share on August 9, 2023, on unusually heavy trading volume.

Then, on November 13, 2023, after the market closed, Beauty Health announced its financial results for the third quarter of 2023. The Company disclosed that "[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." As a result, "the Company is revising its fiscal year 2023 net sales guidance to a range of $385 to $400 million, its fiscal year adjusted EBITDA margin guidance to a range of 5% to 6% and is suspending its long-term 2025 financial outlook." The Company further disclosed that Andrew Stanleick would depart the Company as President & Chief Executive Officer ("CEO") and relinquish his Board seat, effective November 19, 2023.

On this news, the Company's share price fell $2.51, or 64.36%, to close at $1.39 per share on November 14, 2023, on unusually heavy trading volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding Beauty Health's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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SOURCE Faruqi & Faruqi, LLP

FAQ

What is the deadline for investors to seek the role of lead plaintiff in the federal securities class action against The Beauty Health Company (SKIN)?

The deadline for investors to seek the role of lead plaintiff is January 16, 2024.

What are the allegations against The Beauty Health Company (SKIN) and its executives?

The allegations include issues with Syndeo 1.0 and 2.0 devices leading to frequent treatment interruptions, significant costs to develop enhancements, continued issues with the devices, discontinuation of marketing and significant inventory writedowns, potentially impacting the Company's profitability.

How can investors discuss their legal rights if they suffered losses exceeding $50,000 investing in Beauty Health securities?

Investors can call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) or visit www.faruqilaw.com/SKIN.

What is the contact information for Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP can be reached at 877-247-4292 or 212-983-9330 (Ext. 1310) or through their website www.faruqilaw.com/SKIN.