Honest Co. Investors Get Class Status in Suit Over Pre-IPO Sales

Honest Co. shareholders can proceed as a class in a lawsuit alleging the company and its leadership, including co-founder Jessica Alba, failed to disclose waning consumer demand for household products in statements before its initial public offering.

Common issues predominate over individualized ones, and other requirements for class certification are satisfied, Judge Mark C. Scarsi said Monday for the US District Court for the Central District of California.

But the class definition must be altered because of the difficulty of tracing specific shares to a pre-IPO registration statement once non-IPO shares have become commingled, Scarsi said. The issue is similar ...