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Beauty Health Investigation Initiated: Kahn Swick & Foti, LLC Investigates the Officers and Directors of The Beauty Health Company - SKIN
Prnewswire· 2026-01-20 19:44
Core Viewpoint - The Beauty Health Company is under investigation by Kahn Swick & Foti, LLC due to potential breaches of fiduciary duties by its officers and directors following disappointing financial results and a securities class action lawsuit [1][3]. Financial Performance - In November 2023, Beauty Health reported third-quarter financial results that were negatively impacted by lower-than-expected U.S. revenue and incurred $63.1 million in restructuring charges related to device upgrades [2]. - The company revised its fiscal year 2023 net sales guidance to a range of $385 million to $400 million and adjusted its EBITDA margin guidance to 5% to 6%, while suspending its long-term financial outlook for 2025 [2]. Legal Issues - Following the financial disclosures, Beauty Health and certain executives were sued in a securities class action lawsuit for failing to disclose material information, which is currently ongoing [3]. - KSF's investigation is focused on whether the company's officers and/or directors violated state or federal laws or breached their fiduciary duties to shareholders [3].