Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Nov. 20, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises The Beauty Health Company (“Beauty Health” or the “Company”) (NASDAQ: SKIN) investors that a lawsuit filed on behalf of investors that purchased Beauty Health securities between May 10, 2022 and November 13, 2023 , both dates inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On March 8, 2022, Beauty Health made an announcement regarding the launch of the HydraFacial Syndeo, a cloud-based digital device designed to store customer information and customize treatments for facial skincare.
However, on August 9, 2023, Beauty Health disclosed that its gross margin for the second quarter of 2023 was negatively affected due to a shift in product mix towards lower-margin refurbished devices. This shift occurred as U.S. providers awaited Syndeo enhancements scheduled for the third quarter of 2023 to improve the user experience. Additionally, the company announced the involuntary departure of Chief Financial Officer Liyuan Woo without cause. In response to this news, the stock price of Beauty Health dropped by $0.41 per share, representing a decrease of approximately 5.44%, with the stock closing at $7.12 on August 9, 2023.
Then, on November 13, 2023, Beauty Health revealed its financial results for the third quarter of 2023, reporting lower-than-expected U.S. revenue and announcing restructuring charges of $63.1 million related to device upgrades for early-generation Syndeo devices. Consequently, the company revised its fiscal year 2023 net sales guidance to a range of $385 to $400 million and adjusted EBITDA margin guidance to a range of 5% to 6%, while also suspending its long-term 2025 financial outlook. In addition, Beauty Health disclosed the departure of Andrew Stanleick as President and Chief Executive Officer, effective November 19, 2023. As a result of this news, Beauty Health shares experienced a significant decline of $2.51 per share, representing a decrease of approximately 64.36%, with the stock closing at $1.39 on November 14, 2023.
The lawsuit alleges that, throughout the Class Period, the Defendants engaged in false and/or misleading statements and failed to disclose that:
(i) Syndeo 1.0 and 2.0 devices encountered issues leading to frequent treatment interruptions;
(ii) As a consequence, the Company incurred substantial costs to develop enhancements;
(iii) Despite the enhancements, providers continued to experience problems with the Syndeo devices;
(iv) As a result, the Company would cease marketing Syndeo 1.0 and 2.0 devices, incurring significant inventory write-downs;
(v) The Company's profitability would be adversely affected as a result of these issues.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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