Honest Company reaches settlement in shareholder derivative litigation, includes $1.2 million legal fees

• Honest reached a proposed settlement to resolve shareholder derivative litigation tied to alleged misstatements around its May 2021 IPO, including claims of improper inventory stockpiling, slowing demand, and insider payouts.
• Deal calls for corporate governance reforms to be adopted and kept in place for four years, with added oversight of inventory controls, disclosure processes, and board-level risk and compliance monitoring.
• Defendants denied wrongdoing; settlement would dismiss actions in California federal court, Delaware federal court, and California state court with prejudice, subject to court approval.
• Defendants or insurers would pay USD 1.2 million in attorneys’ fees and expenses, subject to court approval, with potential service awards of up to USD 2,000 per stockholder paid from that amount.
• Settlement hearing is set for July 13, 2026, with objections due by June 22, 2026.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. The Honest Company Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001628280-26-033725), on May 12, 2026, and is solely responsible for the information contained therein.