Bloomberg Law
April 5, 2022, 12:17 PM

DISTRESSED DAILY: Rodan & Fields Faces Cash Woes from Settlement

Norah Mulinda
Norah Mulinda
Bloomberg News

Beauty and skincare company Rodan & Fields LLCis facing stressed liquidity after the company reached an agreement to settle class-action lawsuits over one of its products.

Under the preliminary plan, the company will pay $30 million in a cash fund and provide $8 million in product vouchers for costumers who sued, alleging Rodan & Fields’s Lash Boost eyelash growth serum had harmful side effects ranging from eye irritation to darkening of the eyelid and excessive tearing.

The settlement is likely to further dampen Rodan & Fields’s “already less-than-adequate liquidity,” S&P Global Ratings analysts Suyun Quand Amanda O’Neill wrote ...

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