5 frequently asked questions about the class action against beauty health

If you suffered losses in Beauty Health stock, contact Beauty Health stock loss lawyer Timothy L. Miles 

INTRODUCTION TO THE class action against Beauty Health

​The class action against Beauty Health seeks to represent purchasers or acquirers of The Beauty Health Company (NASDAQ: SKIN) securities between May 10, 2022 and November 13, 2023, inclusive (the “Class Period”).  Captioned Alghazwi v. The Beauty Health Company, No. 23-cv-09733 (C.D. Cal.), the class action against Beauty Health charges Beauty Health and certain of its top current and former executive officers with violations of the​​ Securities Exchange Act of 1934.
​​
If you suffered losses in Beauty Health stock and wish to serve as lead plaintiff in the class action against Beauty Health, please contact Beauty Health Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form. Lead plaintiff motions for the class action against Beauty Health must be filed with the court no later than January 16, 2024.

Read on for answers to five frequently asked questions by Beauty Health investors about the class action against Beauty Health.

what are the allegations in the class action against Beauty Health?

​Beauty Health is a health and beauty company which provides “skin health experiences.”

The class action against Beauty Health alleges that defendants throughout the Class Period failed to disclose that: (i) Syndeo 1.0 and 2.0 devices had issues leading to “frequent treatment interruptions”; (ii) as a result, Beauty Health incurred significant costs to develop enhancements; (iii) despite the enhancements, providers continued to experience issues with the Syndeo devices; (iv) consequently, Beauty Health would no longer market Syndeo 1.0 and 2.0 devices and incur significant inventory write-downs; and (v) as such, Beauty Health’s profitability would be adversely impacted.

The class action against Beauty Health further alleges that on August 9, 2023, Beauty Health announced that its second quarter of 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 [of] 2023 to improve user experience.”  Beauty Health also announced the “involuntary separation without cause” of Beauty Health’s Chief Financial Officer, defendant Liyuan Woo, the class action against Beauty Health also alleges.  On this news, the price of Beauty Health shares fell by more than 5%, the complaint alleges.

​Then, the class action against Beauty Health alleges that, on November 13, 2023, Beauty Health disclosed that its third quarter of 2023 “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 complaint alleges, Beauty Health announced that it was “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.”  Beauty Health further disclosed that defendant Andrew Stanleick would depart Beauty Health as President and Chief Executive Officer and relinquish his Board seat, effective November 19, 2023, the Beauty Health class action lawsuit further alleges.  On this news, the price of Beauty Health shares fell by more than 64%, the class action against Beauty Health alleges.

CAN A NON-U.S. INVESTOR SERVE AS LEAD PLAINTIFF IN THE class action against Beauty Health?

​Yes, courts in the U.S. have consistently recognized that non-U.S. investors, many of whom have substantial holdings, are adequate lead plaintiffs and have the same right to move for lead plaintiffs as U.S. investors.  Thus, if a non-U.S. investor suffered losses in Beauty Health​​ stock, they may move the Court to be appointed lead plaintiff in the class action against Beauty Health. 

WHAT ARE THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE class action against Beauty Health?

Serving as a Lead Plaintiff in the class action against Beauty Health has several advantages and important benefits including:

• A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
• Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
• There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred in the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
• Lead Plaintiff has the benefit of being involved and active in all negotiations relating to any settlement.
• Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. 

Thus, there are numerous benefits and other advantages to serving as lead plaintiff in a class action against Beauty Health if you suffered significant losses in Beauty Health​​ stock. ​

WHAT RESPONSIBILITIES WILL THE LEAD PLAINTIFF HAVE IN THE class action against Beauty Health?

​​A Lead Plaintiff owes a fiduciary duty to the class, and therefore, must act in the best interest of the class in the class action against Beauty Health.  Some of the responsibilities of the Lead Plaintiff in the class action against Beauty Health include:

• Selecting, monitoring, and overseeing Lead Counsel.
• Reviewing and commenting on court filings on behalf of the class.
• Discussing litigation strategies with the Lead Counsel.
• Attending depositions (if necessary) and giving a deposition.
• Attending hearings (if necessary).
• Participating in mediation and the trial (if necessary).
• Provide input on any decision concerning the settlement of the securities class action.

WILL THE LEAD PLAINTIFFS GET MORE MONEY THAN CLASS MEMBERS IF THE class action against Beauty Health settles?

No, but they may be entitled to recover their reasonable expenses incurred with are directly related to representing the class in the class action against Beauty Health. Under the Private Securities Litigation Reform Act of 1995, a Lead Plaintiff is only entitled to his or her pro rata share of any recovery and does not receive any additional money for serving as a representative party on behalf of the class.  However, a court, in its discretion, may approve an award of “reasonable costs and expenses (including lost wages)” to a Lead Plaintiff that directly relates to the representation of the class in the class action against Beauty Health on behalf of investors who suffered losses in Beauty Health stock. ​

CONTACT A BEAUTY HEALTH STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN BEAUTY HEALTH STOCK ABOUT A class action against Beauty Health

​If you suffered losses in Beauty Health stock, contact Beauty Health stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against Beauty Health. Call today and see what a Beauty Health stock loss lawyer could do for you if you suffered losses in Beauty Health ​stock.

Beauty Health stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors, shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator, and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, Class Action:  Class Action: Top 100 National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America's Most Honored Lawyers 2020; Top 1% by America's Most Honored (2020-2022).  Mr. Miles has published over three hundred articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or Resources center and call for free anytime.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846-6529