BeautyHealth $18 Million Securities Settlement Who Qualifies, Estimated Payout and How to Claim by January 19, 2027

Investors who bought BeautyHealth common stock or call options, or sold put options, between May 10, 2022 and November 13, 2023 may qualify for a share of an $18 million securities class action settlement. The lawsuit alleges the company and two former executives misled investors about the launch and reliability of the HydraFacial Syndeo 1.0 and 2.0 systems.

The court-approved notice estimates an average recovery of about $0.35 per affected common share, $0.05 per affected call-option underlying share and $0.30 per affected put-option underlying share, all before fees and expenses. Those are averages, not promises. Your payment is calculated from your own trades. BeautyHealth and the individual defendants deny wrongdoing, and the court has not found that anyone committed securities fraud.

The case is Alghazwi v. The Beauty Health Company, et al., Case No. 2:23-cv-09733-SPG-MAA, in the U.S. District Court for the Central District of California, before Judge Sherilyn Peace Garnett. Preliminary approval was granted on October 6, 2026. Final approval is still pending.

One name note: The Beauty Health Company changed its corporate name to SkinHealth Systems Inc. on April 22, 2026 and kept its Nasdaq ticker, SKIN. Your old BeautyHealth records and the current company are the same issuer.

Opt-out and objection deadline: November 24, 2026. Final approval hearing: December 9, 2026. Claim deadline: January 19, 2027.

Quick Facts

Detail	Information
Company	SkinHealth Systems Inc., formerly The Beauty Health Company (NASDAQ: SKIN)
Settlement fund	$18,000,000 cash
Case	Alghazwi v. The Beauty Health Company, et al.
Case number	2:23-cv-09733-SPG-MAA
Court and judge	C.D. California; Judge Sherilyn Peace Garnett
Named plaintiff	Abduladhim A. Alghazwi
Court-appointed lead plaintiffs	Priscilla Dijkgraaf and Martijn Dijkgraaf
Defendants	The Beauty Health Company, Andrew Stanleick and Liyuan Woo
Lead counsel	Hagens Berman Sobol Shapiro LLP
Class period	May 10, 2022 – November 13, 2023, inclusive
Securities covered	Common stock, purchased call options, written or sold put options
Estimated recovery, common stock	About $0.35 per affected share, before deductions
Estimated recovery, call options	About $0.05 per affected underlying share
Estimated recovery, put options	About $0.30 per affected underlying share
Attorneys’ fees requested	Up to $5.4 million (30%)
Minimum payment	$10
Claims administrator	Stretto
Preliminary approval	October 6, 2026
Opt-out and objection deadline	November 24, 2026
Final approval hearing	December 9, 2026, 1:30 p.m. Pacific
Claim deadline	January 19, 2027
Official website	beautyhealthsecuritieslitigation.com

What Is the BeautyHealth Securities Class Action About?

BeautyHealth makes devices and consumables for professional skin-health treatments, including the HydraFacial line. In March 2022 it introduced Syndeo, a newer digitally connected delivery system. The plaintiffs allege that soon after launch the company received significant complaints and continued to speak positively about customer feedback and product performance without disclosing how serious the problems were.

The alleged Syndeo problems

The consolidated complaint describes touchscreen glitches, software malfunctions, suction problems, devices that wouldn’t turn on, parts falling off, treatment interruptions and machines that clogged and became unusable. A central allegation involves the internal manifold, where a narrow channel and membrane allegedly caused recurring clogs. A confidential witness estimated that 20% to 50% of machines may have been affected by late June 2022. Those are allegations from the litigation, not established defect rates. The plaintiffs also allege the company often shipped replacement machines instead of fixing the underlying design and software issues, which raised costs without resolving provider complaints.

What the executives allegedly knew

The suit names former CEO Andrew Stanleick and former CFO Liyuan Woo. The plaintiffs allege executives learned of customer complaints and device problems through internal communications, meetings and customer-feedback systems, and that Stanleick personally got involved in addressing the issues in 2022. The September 2025 court opinion discusses those allegations. The defendants dispute them.

What happened on November 13, 2023

November 13, 2023 is the key date. BeautyHealth reported disappointing third-quarter 2023 results, including lower-than-expected U.S. revenue and about $63.1 million in restructuring charges tied to upgrading earlier-generation Syndeo devices. It cut its 2023 net-sales guidance, suspended its longer-term 2025 outlook and announced that Stanleick would leave effective November 19, 2023. The notice says this news came out after the market closed on November 13 and the stock fell on November 14, 2023. The plaintiffs say it revealed what had been concealed.

The Court Ruling and the Road to Settlement

On September 23, 2025, Judge Garnett denied the defendants’ motion to dismiss the consolidated second amended complaint. She found the allegations about the Syndeo problems, customer complaints, internal communications, executives’ knowledge, statements about performance and the financial impact sufficient to go forward under the federal pleading requirements. That is not a finding of fraud. It only let the case continue.

Date	Development
November 16, 2023	Original complaint filed
May 2, 2024	Lead plaintiffs and lead counsel appointed
September 23, 2025	Motion to dismiss denied
May 20, 2026	Mediation; settlement reached
June 17, 2026	Written stipulation filed
October 6, 2026	Preliminary approval
November 24, 2026	Opt-out and objection deadline
December 9, 2026	Final approval hearing
January 19, 2027	Claim deadline

BeautyHealth produced more than 55,000 documents in discovery before the mediation. The settlement resolves the claims against BeautyHealth, Stanleick and Woo, and it is not an admission of fault.

Who is paying the $18 million

According to BeautyHealth’s June 2026 SEC filing, SkinHealth Systems pays $3,000,000 and certain insurance carriers pay $15,000,000. The fund covers approved fees, expenses, administration costs and payments to investors.

Who Qualifies?

The class is everyone who, between May 10, 2022 and November 13, 2023, inclusive, bought or otherwise acquired BeautyHealth common stock or call options, or sold or otherwise disposed of BeautyHealth put options, and was damaged. You don’t have to own the securities today.

Common stock. Purchased or acquired shares qualify if they produce a recognized loss under the plan.

Call options. Purchased or acquired calls qualify, but they must meet the plan’s closing and holding requirements to generate a recognized loss.

Put options. The class covers people who sold, wrote or otherwise disposed of puts. Buying puts doesn’t make you a class member, and the position must meet the plan’s rules about being open when the corrective news came out.

Excluded: BeautyHealth and the individual defendants, their immediate family members, people who were company officers or directors at relevant times, entities the defendants majority-own, BeautyHealth’s liability insurers, affiliates, parents and subsidiaries, certain employee benefit plans, legal representatives, heirs and successors of excluded persons, and anyone who timely and properly opts out.

This is not a HydraFacial customer settlement

The case is an investor lawsuit. Owning a Syndeo device, running a spa that used HydraFacial or having a malfunctioning machine doesn’t qualify you. Only people who traded the covered securities in the class period are in the class.

How Much Can You Receive?

Security	Estimated average recovery before fees and expenses
Common stock	$0.35 per affected share
Call options	$0.05 per affected underlying share
Put options	$0.30 per affected underlying share

These estimates come from the lead plaintiffs’ damages analysis and assume every eligible class member files a valid claim. If fewer valid claims come in, payments per security can be higher. Nothing is guaranteed.

What comes out of the $18 million

Item	Amount
Attorneys’ fees	Up to $5,400,000
Litigation expenses	Up to $325,000
Lead plaintiff awards	Up to $5,000 each
Notice and administration	Estimated up to $250,000
Taxes and other authorized costs	As applicable

On the notice’s maximum figures, the net fund is at least about $12,015,000 before taxes and other authorized costs. The court has to approve the fees, expenses and awards.

Minimum payment

If your prorated payment would be under $10, you won’t receive one, and that money is added back for claimants who reach $10.

How Your Payment Is Calculated

The plan is a recognized-loss formula, so the administrator looks at what you bought or acquired, when and at what price, what you sold and when, how many shares or options, whether you still held the position after November 13, 2023 and your overall gain or loss.

Common stock

Sold on or before November 13, 2023. Recognized loss is $0 for those shares, even if you bought inside the class period.

Sold November 14, 2023 through February 9, 2024. Recognized loss is the lesser of $2.63 (estimated artificial inflation) or the purchase price minus the average closing price on the sale date.

Held at the close of trading on February 9, 2024. Recognized loss is the lesser of $2.63 or the purchase price minus $2.78, the average closing price during the 90-day lookback period from November 14, 2023 through February 9, 2024.

Call options

Call claims use tables built around each option series, including expiration date and exercise price. Calls closed out or expired on or before November 13, 2023 have zero recognized loss. Qualifying calls still held at the close of trading on November 13, 2023 are valued using the plan’s inflation and holding-value tables.

Put options

Written puts are calculated separately. Positions closed on or before November 13, 2023 have zero recognized loss. Qualifying positions still open at the close of trading on November 13, 2023 are valued using the plan’s deflation and holding-value tables.

The 4% options cap

Combined recognized claims for call and put options can’t exceed 4% of the Net Settlement Fund. If eligible options claims go over that, they are reduced proportionally. If money remains after common-stock claims are paid, some may go to additional options distributions as the settlement provides. So options investors shouldn’t assume their recognized loss will be paid in full.

Overall gains and FIFO

If your qualifying BeautyHealth trades produced an overall market gain, your recognized claim is zero. If your overall market loss is smaller than your calculated claim, the claim is capped at the actual loss. Purchases and sales are matched first-in, first-out (FIFO).

How to File a Claim

A signed Proof of Claim and Release is required. Receiving a notice or owning SKIN during the class period doesn’t trigger an automatic payment. Deadline: January 19, 2027.

File online

Use the Stretto portal at beautyhealthsecuritieslitigation.com/fileaclaim. Online claims must be submitted by 11:59 p.m. Pacific Time on January 19, 2027. You’ll enter the securities, purchase and sale dates, prices and holdings.

File by mail

Download the Proof of Claim and Release (PDF), complete and sign it, attach your documents and mail it to:

BeautyHealth Securities Settlement c/o Stretto 410 Exchange, Suite 100 Irvine, CA 92602

Paper forms must be postmarked or received by January 19, 2027.

Documents to gather

• Brokerage account statements and purchase and sale confirmations
• Transaction history reports
• Records of options purchases, written positions, exercises and closures
• Your holdings on May 9, 2022 and on February 9, 2024

The form asks for all relevant transactions through February 9, 2024 because the loss calculation needs them. That doesn’t extend the class period. If your records are gone, ask your broker or custodian for historical statements. Incomplete or undocumented claims can be delayed or rejected.

Institutional and high-volume filers

Brokers, banks and institutions with many transactions may need to submit electronic schedules in Stretto’s format. Contact the administrator first at (855) 905-5327 or [email protected].

Deadlines and Your Options

Action	Deadline
Request exclusion	November 24, 2026
Object	November 24, 2026
Notice of intention to appear	November 24, 2026
Final approval hearing	December 9, 2026, 1:30 p.m. PT
File a claim online	January 19, 2027, 11:59 p.m. PT
File a claim by mail	Postmarked or received by January 19, 2027

File a claim. The only way to get paid.

Opt out. Your written request must be received by November 24, 2026 at BeautyHealth Securities Settlement, EXCLUSIONS, c/o Stretto, 410 Exchange, Suite 100, Irvine, CA 92602. It must identify you, include your transaction information and clearly say you want out. You get no settlement money and keep whatever right you may have to sue on your own, subject to legal deadlines.

Object. You stay in the class and tell the court what you oppose: the settlement, the Plan of Allocation or the fee and expense requests. Your written objection must be received or filed by November 24, 2026, with copies to counsel. You can object and still claim, but you need a valid Proof of Claim by January 19, 2027 to be paid.

Do nothing. No payment, and if the court grants final approval you are generally bound by the judgment and release.

A warning about opting out

People opt out to keep an individual lawsuit alive, but securities fraud claims have strict time limits under 28 U.S.C. § 1658(b): two years after discovery and five years after the violation. Class action tolling can pause the two-year period while a class case is pending, but under CalPERS v. ANZ Securities, Inc., 582 U.S. 497 (2017), it doesn’t extend the five-year outer limit. If you’re considering opting out, talk to your own attorney before November 24.

When Will Payments Be Sent?

There’s no guaranteed date. The final approval hearing is December 9, 2026, at 1:30 p.m. Pacific at the First Street U.S. Courthouse, 350 West 1st Street, Courtroom 5C, Los Angeles, CA 90012. Judge Garnett will decide whether the settlement, class treatment and Plan of Allocation are fair, reasonable and adequate and will rule on fees and awards. Even after approval, the administrator still has to review claims and compute losses, and appeals can add delay. You don’t have to attend.

Did BeautyHealth Admit Fraud?

No. BeautyHealth and the individual defendants deny the allegations and any liability. The settlement is a negotiated compromise, not a finding that securities laws were violated.

The Securities Laws Behind the Case

These are the plaintiffs’ allegations, not findings.

Section 10(b) and Rule 10b-5. 15 U.S.C. § 78j(b) and 17 C.F.R. § 240.10b-5 prohibit fraud and material misstatements or omissions in connection with buying or selling securities. A private plaintiff generally must prove a material misstatement or omission, scienter, reliance, economic loss and loss causation. Options count as securities under the Exchange Act’s definition (15 U.S.C. § 78c(a)(10)), which is why call and put traders are in this class.

Section 20(a). 15 U.S.C. § 78t(a) can make a person who controls a violator liable too, subject to defenses. It doesn’t make an executive liable just because of the title.

The Private Securities Litigation Reform Act (PSLRA). 15 U.S.C. § 78u-4 governs these suits. It covers lead plaintiff selection, strict pleading of scienter, the 90-day lookback that caps damages using the mean trading price after the corrective disclosure (the source of the $2.78 figure), and a limit on fees and expenses to a reasonable percentage of what’s actually paid to the class.

Key Supreme Court cases. Basic Inc. v. Levinson, 485 U.S. 224 (1988) lets investors rely on the market price reflecting public information. Halliburton Co. v. Erica P. John Fund, Inc., 573 U.S. 258 (2014) lets defendants rebut that by showing the statements didn’t move the price. Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (2005) requires proof the misstatement caused the loss. Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308 (2007) governs how scienter must be pleaded.

Class action procedure. Federal Rule of Civil Procedure 23(e) requires court approval after notice, a hearing and a finding that the settlement is fair, reasonable and adequate, and Rule 23(e)(5) lets class members object. Under the Class Action Fairness Act, 28 U.S.C. § 1715, defendants must notify federal and state officials of a proposed class settlement.

Do Settlement Payments Count as Taxable Income?

Possibly. For investors, settlement proceeds can affect the gain or loss on the shares or options, and the answer depends on your situation and entity type. This article isn’t tax advice, so ask a qualified tax professional.

Frequently Asked Questions About the BeautyHealth Securities Settlement

Is the BeautyHealth $18 million settlement real?

Yes. The U.S. District Court for the Central District of California granted preliminary approval on October 6, 2026, in Alghazwi v. The Beauty Health Company. Final approval is still pending.

Who qualifies for the BeautyHealth securities settlement?

People and entities that bought or acquired BeautyHealth common stock or call options, or sold or wrote put options, from May 10, 2022 through November 13, 2023 and were damaged, unless they are excluded.

Is BeautyHealth now called SkinHealth Systems?

Yes. The company changed its name to SkinHealth Systems Inc. on April 22, 2026 and kept the Nasdaq ticker SKIN.

How much can BeautyHealth common-stock investors receive?

The estimated average is about $0.35 per affected share before deductions. It isn’t guaranteed, and your payment is based on your own recognized loss.

Can BeautyHealth call-option and put-option traders file claims?

Yes. Purchasers of calls and sellers or writers of puts can qualify, with separate loss calculations and a combined options cap of 4% of the Net Settlement Fund.

Do I qualify if I bought puts on BeautyHealth?

Not on that basis. The class covers people who sold or otherwise disposed of put options, not buyers of puts.

Do I qualify if I sold my BeautyHealth shares before November 13, 2023?

You may be inside the class, but common shares sold on or before November 13, 2023 have a recognized loss of zero under the allocation formula.

What is the minimum BeautyHealth settlement payment?

$10. Payments below that aren’t made.

What is the BeautyHealth settlement claim deadline?

January 19, 2027. Online claims are due by 11:59 p.m. Pacific Time, and paper forms must be postmarked or received by that date.

What are the BeautyHealth opt-out and objection deadlines?

Both are November 24, 2026.

When is the BeautyHealth final approval hearing?

December 9, 2026, at 1:30 p.m. Pacific, in Courtroom 5C of the First Street U.S. Courthouse in Los Angeles.

Does the settlement cover people who used HydraFacial or own a Syndeo device?

No. It is an investor settlement for people who traded the covered BeautyHealth securities during the class period, not a customer compensation program.

Did BeautyHealth admit securities fraud?

No. BeautyHealth and the individual defendants deny wrongdoing and liability.

When will BeautyHealth settlement payments be sent?

There’s no confirmed date. Payments follow final approval, claims processing and the resolution of any appeals.

The Bottom Line

If you bought BeautyHealth stock or calls, or sold puts, between May 10, 2022 and November 13, 2023, check your trades against the plan. The $0.35, $0.05 and $0.30 figures are only averages, and shares or options closed out on or before November 13, 2023 generally carry no recognized loss. File a complete Proof of Claim with your brokerage records by January 19, 2027. If you want to opt out or object, the date is November 24, 2026. Final approval is on the calendar for December 9, 2026, and nothing is paid until after that.

Official Documents, Court Records and Sources

Settlement website and claim process

1. Official settlement website
2. File a claim online
3. Proof of Claim and Release (PDF)
4. Notice of proposed settlement (PDF)
5. Stipulation and Agreement of Settlement (PDF)
6. Important documents

Company and court records

7. SkinHealth Systems Form 10-Q, June 30, 2026
8. Corporate rebrand announcement, April 22, 2026
9. September 23, 2025 order denying motion to dismiss
10. Alghazwi v. The Beauty Health Company, No. 2:23-cv-09733-SPG-MAA (C.D. Cal.)

Law

11. 15 U.S.C. §§ 78c(a)(10), 78j(b), 78t(a) and 78u-4; 17 C.F.R. § 240.10b-5; 28 U.S.C. §§ 1658(b) and 1715; Fed. R. Civ. P. 23
12. Basic Inc. v. Levinson, 485 U.S. 224 (1988); Halliburton Co. v. Erica P. John Fund, 573 U.S. 258 (2014); Dura Pharmaceuticals v. Broudo, 544 U.S. 336 (2005); Tellabs v. Makor, 551 U.S. 308 (2007); CalPERS v. ANZ Securities, 582 U.S. 497 (2017)

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About the author: Researched and written by Israr Ahmad using the court-approved settlement notice, the Proof of Claim, SEC filings, the court’s published opinion and the securities laws cited above.

Disclaimer: AllAboutLawyer.com is an independent legal information website. It is not a law firm and does not provide legal, tax or investment advice, and nothing here creates an attorney-client relationship. The settlement is subject to final court approval, and the defendants deny all allegations and liability. Estimated recoveries aren’t guaranteed, and individual payments depend on the court-approved allocation plan and the administrator’s verification. Statutes and deadlines can change, so confirm them on the official website or with a licensed attorney before you rely on this article.