BeautyHealth $18M Securities Settlement (SKIN) — About $0.35 a Share

Current Status

Claims are open. A Claim Form must be submitted online by 11:59 p.m. Pacific time on January 19, 2027, or mailed with a postmark of that date or earlier. Judge Sherilyn Peace Garnett of the U.S. District Court for the Central District of California granted preliminary approval on October 6, 2026, and the final approval hearing is set for December 9, 2026, at 1:30 p.m. The settlement has not received final approval, and no payment date had been announced as of October 27, 2026.

What Changed Recently?

The Beauty Health Company, the maker of the Hydrafacial device that now operates as SkinHealth Systems Inc. (Nasdaq: SKIN), agreed to pay $18 million in cash to settle Alghazwi v. The Beauty Health Company, a federal securities class action. The deal was reached at a May 20, 2026 mediation and signed in a stipulation dated June 17, 2026. The court’s October 6, 2026 order preliminarily approved it, certified a settlement class and approved the notice plan, and Stretto is administering claims.

The lead plaintiffs allege that the company and two former executives, former CEO Andrew Stanleick and former CFO Liyuan Woo, made misleading statements about the launch of Syndeo, the company’s newest Hydrafacial delivery system, while concealing design problems that led to widespread malfunctions, returns and a costly remediation program. According to the complaint, the stock fell after the company’s November 13, 2023 third-quarter report. The claims were brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The court denied the defendants’ motion to dismiss in September 2025. BeautyHealth denies the allegations and any wrongdoing or liability, and the settlement is not an admission of fault.

Who Qualifies?

The settlement class covers all persons and entities that, from May 10, 2022 through November 13, 2023, inclusive, purchased or otherwise acquired BeautyHealth common stock or call options, or sold or otherwise disposed of BeautyHealth put options, and were damaged as a result.

Excluded are the defendants and their immediate families, BeautyHealth’s officers and directors during the relevant period, entities in which a defendant held a majority interest, BeautyHealth’s liability insurers, affiliates, parents and subsidiaries, BeautyHealth plans covered by ERISA, and anyone who opts out.

How Much Can You Get?

The notice estimates an average recovery of about $0.35 per share of common stock, $0.05 per call-option underlying share and $0.30 per put-option underlying share, before attorneys’ fees, expenses and administration costs, assuming every eligible investor files. Fees and costs at the maximum requested amounts would come to about $0.12 per common share. These are averages; actual payments depend on each claimant’s trades and on the total value of valid claims, and the notice says per-share payments will be higher if fewer investors file.

For common stock, the plan of allocation sets the recognized loss at $0 for shares sold on or before November 13, 2023. Shares sold from November 14, 2023 through February 9, 2024 recover the lesser of $2.63 a share or the purchase price minus the average closing price on the sale date. Shares still held at the close of trading on February 9, 2024 recover the lesser of $2.63 or the purchase price minus $2.78, the stock’s average closing price during the 90-day period after the class period.

Call options bought and put options written during the class period count only if the position was still open at the close of trading on November 13, 2023, and all option claims together are limited to 4% of the net settlement fund. The net fund is divided pro rata by each claimant’s share of total recognized losses, and no payment is made to a claimant whose share would be less than $10.