Olaplex, IPO Investor Reach Settlement in Banned Ingredient Suit

Olaplex Holdings Inc. agreed to settle investor allegations that the luxury hair care company’s initial public offering documents didn’t disclose the European Union banned an ingredient formerly used in one of its key products.

Terms of the settlement in principle weren’t included in the joint stipulation filed in the US District Court for the Central District of California Wednesday. In February, Judge Stephen Victor Wilson ruled the 2021 IPO paperwork was plausibly misleading because Olaplex presented the possibility of laws prohibiting the use of certain ingredients and potential business effects as a hypothetical when the EU had already barred fragrance-ingredient ...