Analyst Sees Further Downside for The Beauty Health Co. (SKIN) Amid Investor Suit Arising from Syndeo “Mistakes” – Hagens Berman
HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages SKIN Investors with Substantial Losses to Contact Firm Before Jan. 16th Deadline
SAN FRANCISCO, Jan. 13, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges The Beauty Health Company (NASDAQ: SKIN) investors who suffered substantial losses to submit your losses now.
The Beauty Health Company (NASDAQ: SKIN) Securities Fraud Class Action:
Piper Sandler reiterated its “underweight rating” for Beauty Health after conducting a phone survey of 50 HydraFacialists. The survey reportedly revealed “a significant % of Syndeo owners experienced issues and received replacements, and these issues expanded beyond the clogging management has called out.”
In her report to clients, analyst Korinne Wolfmeyer also found “>1/3 of Syndeo owners have not yet received a replacement/fix, and ~10% of Elite owners don’t want to upgrade due to these issues.” Wolfmeyer concluded, “given the Syndeo challenges and likelihood for more cash burn, we see further downside.”
The analyst scrutiny comes after the filing of a securities class action litigation brought against Beauty Health and its executives, stemming from the company’s disappointing third quarter results and disclosed “mistakes” with its Syndeo systems.
The lawsuit alleges that Beauty Health failed to disclose that: (1) Syndeo 1.0 and 2.0 devices had issues leading to “frequent treatment interruptions;” (2) as a result, the company incurred significant costs to develop enhancements; (3) despite the enhancements, providers continued to experience issues with Syndeo devices; and (4) as a result, the company would discontinue marketing Syndeo 1.0 and 2.0 devices and incur significant inventory write-downs.
The truth emerged on Nov. 13, 2023, when Beauty Health disclosed dismal 3Q 2023 with “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, Beauty Health slashed its FY 2023 guidance and suspending its long-term 2025 financial outlook. Beauty Health further disclosed CEO Stanleick would depart Beauty Health as President and CEO and relinquish his Board seat.
On this news, the price of Beauty Health shares fell by more than 64%.
“The litigation focuses on whether Beauty Health executives concealed ‘frequent treatment interruptions’ with its Syndeo devices,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Beauty Health and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
Whistleblowers: Persons with non-public information regarding Beauty Health should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Reed Kathrein, 844-916-0895