Get Your Fresh Intelligence Daily

SUBMIT

Jessica Alba's The Honest Company Sued In Connection To Alleged Covid-19 Related Fraud

Sep. 16 2021, Published 2:26 p.m. ET

Link to FacebookShare to TwitterShare to Email

Jessica Alba and her baby business, The Honest Company, are being sued for allegedly misleading shareholders about their 2020 sales.

Article continues below advertisement

According to the lawsuit obtained by KNEWZ, shareholders decided to buy stock in The Honest Company after it went public this past May, mainly because the financial reports from 2020 showed sales were up. But in reality, the shareholders claim Alba’s company reportedly failed to disclose the fact that sales were only up because customers were stockpiling the products due to the Covid-19 pandemic sweeping the nation.

jessica alba honest company sued covid  fraud r
Source: MEGA
Article continues below advertisement

According to the lawsuit, in July — two months after The Honest Company went public — they released a new report disclosing how the company lost more than $20 million in sales for 2021’s second quarter, and that their stock prices crashed almost 43% from the original public offering price.

The shareholders’ main gripe, and the reason for their lawsuit, is that they believe Honest hid the fact customers had stocked up on diapers, wipes, and other wellness products due to the pandemic. By the time the company went public in May, the shareholders believe Alba and her company knew sales were falling drastically and willingly decided not to inform shareholders, and potential shareholders, of that information.

Article continues below advertisement
jessica alba honest company sued covid  fraud r
Source: MEGA

This dramatic turn in events comes only months after Radar reported how Alba was partying hard in Miami due to officially reaching billionaire status – thanks, in no small part, to the success of her Honest Company. After the company went public, The Honest Company was reportedly valued at $2 billion dollars.

Article continues below advertisement

Now, only nearly three months later, it appears that Jessica Alba and The Honest Company might be in some hot water if this lawsuit goes further.

So far, no representatives for Jessica Alba or The Honest Company have responded to the allegations. They also have not yet commented or made any public statements regarding the lawsuit.

jessica alba honest company sued covid  fraud r
Source: MEGA
Advertisement

© Copyright 2021 Radar Media Group LLC. Radar and RadarOnline are registered trademarks. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.