NEW YORK, Nov. 22, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP reminds investors that a complaint has been filed on behalf of investors that purchased or otherwise acquired The Beauty Health Company (“Beauty Health” or the “Company”) (NASDAQ: SKIN) securities between May 10, 2022 and November 13, 2023, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Beauty Health securities during the Class Period and would like to discuss this case, please click here. You may also contact us by emailing pmayer@kaplanfox.com or calling (646) 315-9003.
If you are a member of the proposed Class, you may move the court no later than January 15, 2024 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
According to the complaint, Beauty Health’s flagship brand is Hydrafacial™ and Hydrafacial’s leading product is Syndeo, a data-connected hydradermabrasion machine, which launched in the United States in March 2022.
On August 9, 2023, before the market opened, Beauty Health announced that second quarter 2023 gross margin was “unfavorably impacted” by a mix shift “towards 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 Liyuan Woo.
Following this news, the Company’s shares fell $0.41, or 5.4%, to close at $7.12 per share on August 9, 2023.
Then, on November 13, 2023, 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." According to the complaint, the restructuring charges included an $18.8 million inventory write-down because the Company designated all Syndeo 1.0 and 2.0 devices as obsolete and will only market and sell Syndeo 3.0 devices.
Following this news, Beauty Health's stock price fell $2.51 per share, or 64.36%, to close at $1.39 per share on November 14, 2023.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
