Jessica Alba Honest Co. Slapped With Lawsuit for Alleged Fraudulent Diaper Sales

Something stinks around here and it’s not a poopy diaper! Jessica Alba’s ever-troubled Honest Company is being sued by shareholders for allegedly misleading them into believing that the company was thriving, even in the middle of a pandemic.

The Honest Company allegedly failed to disclose that at the start of the pandemic, parents stocked up on diapers and other products from the brand making it look as though the company was doing great but the sales have actually tanked because parents are now too stocked up.

According to TMZ, when the company went public in May 2021, the financial reports showed a thriving business by using 2020 sales but just two months later, they released a report stating that they lost $20 Million in the second quarter of 2021.

This caused the stock price to drastically drop, we’re talking a 43% drop from the original offering price. And yes, stocks have their ups and downs, but this all seems a bit weird and the people behind the claim, agree.

They believe that the brand hid key details about customers stockpiling products and could have projected that it wasn’t the right time to go public, yet, they did it anyway.

Some of the products that consumers are accused of stockpiling besides diapers are baby wipes, wellness products, and cleaning supplies.

The company has been accused of being shady in the past as well. In March 2017, the brand was accused of not using the environmentally and skin-safe ingredients they boast about in their advertisements.

Entrepreneur called them out for having to recall their baby powder over concerns of causing infections. The company has also had several civil lawsuits filed against them for accusations including false advertisements and people who have “suffered” from using the brand's “natural” products.

Honest Company claimed a rebrand was underway when the lawsuits were filed but since then they have continued to come under fire for one thing or another. Still, Alba stands by her brand and insists that they are always working up new ways to make better products.

The actress’s brand was also featured in Forbes in 2015 for a botched sunscreen that got slammed on Amazon.com with horrible reviews. The product was accused of not even being strong enough to protect against the bright rays of the sun.

They have since then “fixed” that problem as well, but it seems like Alba and her Honest brand are struggling to prove that they can be trusted.

According to the shareholders, the company isn't always shady, they did share that the brand was truthful about COVID being a driving force in their revenue jump. But they did not disclose that they knew sales were declining and that COVID was essentially the only reason why the company made as much money as they did that year.

Neither Alba nor the company has responded to the accusations against them. On the bright side, at least this time around, the problem is their stock and not the products they are okaying people to put on their skin.