Facial Machine Maker’s Investors Advance Suit Over 64% Selloff

Beauty Health Co. investors can proceed with securities fraud claims against the spa and beauty parlor supplier for misrepresenting the success of a device that was allegedly “plagued with flaws,” a federal court ruled.

The investors adequately alleged false or misleading representations, the necessary level of intent, and a connection between the targeted statements and their losses, Judge Sherilyn Peace Garnett said in an order docketed Thursday in the US District Court for the Central District of California.

The plaintiffs alleged that in the period after the Syndeo high-end facial system’s introduction, Beauty Health and two then-executives praised its “flawless” ...