SKIN · The Beauty Health Company

Summary

The Beauty Health Company disclosed a proposed non-monetary settlement of a consolidated stockholder derivative action in the Delaware Court of Chancery (C.A. No. 2024-0114-LWW) via a Stipulation dated February 9, 2026, subject to court approval on May 13, 2026. The settlement implements corporate governance reforms addressing alleged Syndeo product issues and fiduciary duty breaches.

Key takeaways

• Stipulation of Settlement entered February 9, 2026, for Elstein v. Saunders et al. (In re The Beauty Health Co. Consolidated S’holder Litig.), C.A. No. 2024-0114-LWW (Del. Ch.)
• Notice given to stockholders of record as of February 20, 2026, on March 3, 2026
• Settlement Hearing scheduled for May 13, 2026, at 11:00 AM in Delaware Court of Chancery
• Corporate Governance Reforms include Quality Ombudsman role, enhanced inventory monitoring, amended Audit Committee charter, clawback policy expansion, and formalized Disclosure Committee
• Fee Award of $737,500 agreed for Plaintiffs’ Counsel, separate from settlement benefits
• Reforms address alleged Syndeo hardware/software defects and disclosure issues post-March 2022 launch