Investigation Launched Into The Beauty Health Company By Former Louisiana AG Foti
On November 21, 2025, former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., who is also a partner at Kahn Swick & Foti, LLC, declared the initiation of an investigation into The Beauty Health Company, known by its NasdaqCM ticker symbol SKIN. The firm has taken notice of significant financial turbulence the company experienced in Q3 2023, which was marked by disappointing U.S. revenue results and severe restructuring costs totaling $63.1 million. These charges were primarily linked to substantial upgrades of old-generation devices associated with their flagship product, Syndeo.
The combination of disappointing financial returns and such extensive restructuring charges has not only prompted a revision of the company's sales forecasts for the fiscal year 2023, reducing it to a projected range of $385 to $400 million, but has also led them to suspend their longer-term financial outlook for 2025. In response to these upheavals, CEO Stanleick announced he would step down from his position and resign from the company’s Board of Directors. This cascade of events compelled certain executives and the company itself to face a securities class action lawsuit, alleging they failed to disclose essential information that breaches federal securities laws. As this legal matter progresses, the focus shifts to the company's leadership: did they adequately uphold their fiduciary responsibilities to shareholders?
The investigation spearheaded by KSF aims to scrutinize the actions and decisions of The Beauty Health Company's officers and directors. The firm is paying close attention to whether there were any breaches of fiduciary duties or violations of applicable state and federal laws. This inquiry is critical given the ongoing legal challenges the company faces and the growing concerns of investors who believed in its long-term potential.
Shareholders or individuals who possess insights that might aid in this investigation are encouraged to reach out to KSF. They can do so without any obligation or cost by calling toll-free at 1-833-938-0905 or emailing KSF Managing Partner Lewis Kahn at [email protected] Additionally, individuals can find more information by visiting the KSF website.
Kahn Swick & Foti, LLC stands as a leading boutique securities litigation firm in the United States. Founded by Charles C. Foti, Jr., KSF specializes in representing both institutional and retail investors seeking recovery for losses incurred through corporate fraud and negligence within publicly traded companies. Notably, the firm was recognized in the past year as one of the top 10 law firms in the nation based on the total value of settlements facilitated.
In summary, the scrutiny over The Beauty Health Company provoked by its financial shortcomings and leadership shake-up highlights the essential role of corporate governance. As investors await clarity on these issues, KSF’s investigation will shed light on whether the right measures are taken for accountability. Anyone associated with Beauty Health or aware of relevant information is urged to collaborate as this saga unfolds.
For their part, Kahn Swick and Foti continue to push forward, advocating for investors’ rights while ensuring corporate transparency and ethical leadership are prioritized in all business dealings.