Honest Co. Investors Reach $28 Million Accord to Settle IPO Suit

Honest Co., members of its leadership, underwriters of its initial public offering, and a controlling shareholder group have agreed to pay nearly $28 million to end a class action alleging sales misrepresentations, an investor says.

Co-founder Jessica Alba is among the executives and directors named as defendants in the suit, part of a wave of litigation over the effects of the Covid-19 pandemic.

A proposed $20 million settlement by Honest, its leaders, and the underwriters—and one for $7.5 million by alleged 37% owner Catterton Management Co. and affiliates—warrants preliminary approval, the class representative told the US District Court for the ...