Published
October 27, 2026
Investors who bought The Beauty Health Company (now SkinHealth Systems) common stock or call options, or sold put options, from May 10, 2022 through November 13, 2023 may qualify to claim a share of the $18 million BeautyHealth securities class action settlement. Claims are open through January 19, 2027, and the final approval hearing is set for December 9, 2026.
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.Free settlement alerts
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Status
Claims Open
Claim Deadline
January 19, 2027
Online by 11:59 p.m. PT or postmarked · exclusions and objections due November 24
Estimated Payout
About $0.35 a Share
Average per common share before fees · options far less · pro rata · $10 minimum
Proof Required
Yes — Brokerage Records
Broker confirmations or statements for every BeautyHealth transaction and holding
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.
What Proof or Notice ID Is Required?
The printed Claim Form does not ask for a notice ID or claim number, but the claim rests on brokerage records. Claimants list every BeautyHealth common stock, call option and put option transaction in the periods the form specifies, along with holdings at set dates, and must attach supporting documentation such as broker confirmation slips or monthly account statements. The form warns that missing documentation may lead to rejection of the claim. Brokers and other nominees that file for multiple accounts use the electronic filing template posted on the settlement website.What Is the Deadline?
Claim Forms submitted online are due by 11:59 p.m. Pacific time on January 19, 2027. Paper Claim Forms must be postmarked by January 19, 2027.Requests for exclusion must be received, not just postmarked, by November 24, 2026. Objections to the settlement, the plan of allocation or the fee request must be received or filed by November 24, 2026, which is also the deadline to file a notice of intention to appear at the hearing.
How Do You Take Action?
The online claim portal, the long-form notice, the Claim Form, the stipulation and the preliminary approval order are posted on the official BeautyHealth Securities Litigation website. Filing involves entering each BeautyHealth transaction and holding, uploading the brokerage records and signing the release. Investors whose brokerage account has closed can request historical statements from the broker.Separately, Hydrafacial agreed to a $925,000 Syndeo device settlement for New York businesses that owned or leased the machine; that case is unrelated to stock purchases. Other open stock-drop and merger settlements are collected on OCA’s securities class actions hub.
What Happens Next?
Judge Garnett will hold the final approval hearing on December 9, 2026, at 1:30 p.m. in Courtroom 5C of the First Street U.S. Courthouse in Los Angeles to decide whether to approve the settlement, the plan of allocation and the fee request. The notice says the court may move the hearing without further notice, and any change will be posted on the settlement website. Payments begin only after final approval, the resolution of any appeals and the processing of all claims. No payment date had been announced as of October 27, 2026.Sources and Verification
- BeautyHealth Securities Litigation — official settlement website
- Notice of Pendency and Proposed Settlement of Class Action and Proof of Claim and Release form
- Order granting preliminary approval (ECF No. 138, October 6, 2026)
- Court docket, including the Consolidated Second Amended Complaint (ECF No. 57), Alghazwi v. The Beauty Health Company, No. 2:23-cv-09733-SPG-MAA, C.D. Cal.
Questions
Do BeautyHealth shares sold before November 14, 2023 count?
No. Under the plan of allocation, common stock bought during the class period and sold on or before November 13, 2023 has a recognized loss of $0. Only shares sold from November 14, 2023 onward, or still held at the close of trading on February 9, 2024, can produce a recognized loss.
Are BeautyHealth options covered?
Call options bought and put options sold (written) during the class period are covered, but only positions still open at the close of trading on November 13, 2023 can produce a recognized loss. All option claims together are capped at 4% of the net settlement fund.
How much will the lawyers ask for?
Lead counsel Hagens Berman Sobol Shapiro LLP plans to request attorneys’ fees of up to 30% of the fund ($5.4 million) and litigation expenses of up to $325,000, plus up to $5,000 for each of the two lead plaintiffs. Administration costs are estimated at no more than $250,000. At those amounts the notice estimates the cost at about $0.12 per share of common stock.
Is there a minimum payment?
No payment is made to a claimant whose calculated share is less than $10. That money is added to the payments for claimants whose share is $10 or more.
Is this the same as the Hydrafacial Syndeo device settlement?
No. This settlement resolves a federal securities case brought by investors. A separate $925,000 settlement covers New York businesses that owned or leased a Syndeo device, and it pays automatically with no claim form.
For more class actions keep scrolling below.
Settlement Amount
$18,000,000
Case Title
Alghazwi v. The Beauty Health Company
Case Number
2:23-cv-09733-SPG-MAA
Court
U.S. District Court, Central District of California
Final Approval Hearing
December 9, 2026 at 1:30 PM
Courtroom 5C, First Street U.S. Courthouse, Los Angeles
Administrator
Stretto
Official Website
BeautyHealth Securities Litigation
