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Entertainment Jessica Alba's Honest Company sued by shareholders

14:40  17 september  2021
14:40  17 september  2021 Source:   bangshowbiz.com

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Jessica Alba's Honest Company are being sued by shareholders for alleged fraud.

Jessica Alba holding a sign posing for the camera © Bang Showbiz Jessica Alba

The 'Sin City' star's firm have been accused of misleading people by failing to disclose essential details about sales after they saw business boom during the early months of the coronavirus pandemic, when parents were stocking up on diapers and other products, only to fall in the subsequent quarters.

According to documents obtained by TMZ, the shareholders insisted they bought Honest stock when the company went public in May 2021 because of strong financial reports from the previous year, making it seem as if the company was on the rise.

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However, two months later, a report from the firm revealed they had lost $20 million in the second quarter of 2021, causing stock prices to plummet almost 43$ from the public offering price.

The shareholders alleged in the lawsuit that Honest hid the basic fact that consumers had stockpiled because of the pandemic and by the time they went public, they knew sales had dropped in a major way.

However, the group admitted Honest had disclosed the global health crisis had contributed to high sales and there was no assurance the figures would continue at such a level, but they argued the firm knew sales had already begun to drop but weren't transparent about it.

A spokesperson for Jessica and the Honest Company has not yet commented on the lawsuit.

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Meanwhile, the 40-year-old actress - who has children Honor, 13, Haven, nine, and Hayes, three, with husband Cash Warren - previously admitted she has been attending therapy with her teenage daughter in order to improve communication between them.

She said: "[With] my 13 year old, I'm struggling with not treating her like a little [kid] - I want to treat them all like babies. I want to baby them. Still my tendency is to parent them as if they are little.

“I started going to therapy with her I think when she was 11. For me it was really out of, I felt like my relationship really suffered with my parents because they didn't know how to communicate with me and how I needed to be parented. So I didn't want that breakdown with Honor so we went to therapy together."

Alba completely chanceless in Barcelona .
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