The Honest Company, Inc. reached a settlement in multiple stockholder derivative actions alleging fiduciary breaches related to its 2021 IPO, involving corporate governance reforms and up to $1.195 million in plaintiff's counsel fees, pending final court approval on July 13, 2026.
Key takeaways
Parties entered Stipulation of Settlement on March 12, 2026, to resolve all Derivative Actions.
California Central District Court granted preliminary approval on May 1, 2026; final hearing scheduled for July 13, 2026.
Settlement requires corporate governance reforms per Exhibit A, without admission of wrongdoing.
Company will not oppose plaintiff's counsel fee award up to $1,195,000.
Actions stem from alleged misleading statements on financial health and product demand during May 2021 IPO.