Olaplex to Face IPO Documents Fraud Claims Over Toxic Ingredient

Olaplex Holdings Inc. must face claims brought by an investor alleging its initial public offering documents didn’t disclose that the European Union banned an ingredient in one of its hair care products, a federal court said.

Olaplex’s documents were misleading because the company presented the possibility of laws prohibiting the use of certain ingredients in its products and their potential harm as purely hypothetical, rather than describing the facts at the time, Judge Steven Victor Wilson said Feb. 7 for the US District Court for the Central District of California.

The luxury haircare company describes its products as “non-toxic” and ...