Hagens Berman Sobol Shapiro LLP Announces Proposed Class Action Settlement on Behalf of Purchasers of The Beauty Health Company ("BeautyHealth") Common Stock and Call Options and Sellers of Put Options

BERKELEY, Calif., Oct. 26, 2026 /PRNewswire/ --

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

ABDULADHIM A. ALGHAZWI, individually and on behalf of all others similarly situated,
Plaintiff,

vs.

THE BEAUTY HEALTH COMPANY, ANDREW STANLEICK, and LIYUAN WOO,
Defendants.

Case No.: 2:23-cv-09733-SPG-MAA

SUMMARY NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION

Hon. Sherilyn Peace Garnett

TO:     ALL PERSONS OR ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED SKINHEALTH SYSTEMS INC. F/K/A THE BEAUTY HEALTH COMPANY ("BEAUTYHEALTH") COMMON STOCK OR BEAUTYHEALTH CALL OPTIONS, OR SOLD OR OTHERWISE DISPOSED OF BEAUTYHEALTH PUT OPTIONS, FROM MAY 10, 2022 THROUGH NOVEMBER 13, 2023, INCLUSIVE, YOUR RIGHTS MAY BE AFFECTED BY A PROPOSED SETTLEMENT IN A LAWSUIT PENDING IN FEDERAL COURT (THE "ACTION").¹ PLEASE READ CAREFULLY.

YOU ARE HEREBY NOTIFIED that a hearing will be held on December 9, 2026, at 1:30 pm, before the Honorable Sherilyn Peace Garnett, United States District Judge, at the United States District Court for the Central District of California, 350 W. 1st Street, Courtroom 5C, Los Angeles, CA 90012 for the purpose of determining: (1) whether the proposed Settlement of the Action for $18,000,000 in cash should be approved as fair, reasonable, and adequate to the Settlement Class Members; (2) whether the Settlement Class should be certified for purposes of the Settlement and whether Lead Plaintiffs and Lead Counsel should be certified as class representatives and class counsel for the purposes of the Settlement; (3) whether, thereafter, the Action should be dismissed with prejudice as set forth in the Stipulation and Agreement of Settlement dated June 17, 2026; (4) whether the proposed Plan of Allocation of the Settlement Amount is fair, reasonable, and adequate; (5) whether the application by Lead Counsel Hagens Berman Sobol Shapiro LLP, for attorneys' fees and expenses and for awards to the Court-appointed Lead Plaintiffs Priscilla Dijkgraaf and Martijn Dijkgraaf should be approved; and (6) whether the proposed Judgment should be entered.

The Action has been preliminarily certified as a class action for settlement purposes on behalf of all Persons or entities which purchased or otherwise acquired BeautyHealth Common Stock or BeautyHealth Call Options, or sold or otherwise disposed of BeautyHealth Put Options, during the Settlement Class Period and who were damaged thereby ("Settlement Class Members"). In the Action, Lead Plaintiffs assert claims against BeautyHealth, Andrew Stanleick, and Liyuan Woo ("Defendants") under the Securities Exchange Act of 1934 ("Exchange Act"). A detailed description of the Action, including the parties, the claims and defenses, and other important information about your rights and options, is in the detailed Notice of Pendency and Proposed Settlement of Class Action (the "Notice").

Lead Plaintiffs allege that during the Settlement Class Period, Defendants made materially false and misleading statements in violation of §10(b) of the Exchange Act, Rule 10b-5 promulgated thereunder, and §20(a) of the Exchange Act, which caused the price of BeautyHealth Securities to trade at artificially inflated prices during the Settlement Class Period. Lead Plaintiffs further allege that persons who purchased/acquired and/or sold BeautyHealth Securities during the Settlement Class Period suffered economic losses when the price of BeautyHealth Securities declined as a result of a corrective disclosure revealed on November 13, 2023. BeautyHealth denies and continues to deny these allegations and all allegations of wrongdoing or liability.

During the litigation, the Settling Parties engaged a third-party mediator, Greg Danilow of Phillips ADR Enterprises, P.C. After the submission of comprehensive mediation statements and other materials, Lead Plaintiffs and BeautyHealth participated in an in-person mediation with Mr. Danilow on May 20, 2026. After negotiation throughout the mediation process, the Settling Parties conditionally agreed on settling the Action for $18,000,000 and executed a confidential term sheet, which memorialized the key terms of this Stipulation.

At the Fairness Hearing, Lead Counsel will request that the Court award aggregate attorneys' fees. These attorneys' fees are not to exceed 30% of the Settlement Amount ($5,400,000). Settlement Class Members are not personally liable for any such fees or any other expenses (estimated not to exceed $325,000 for litigation expenses, and $250,000 for Notice and Administration Expenses). In addition, Lead Plaintiffs may seek payment not to exceed $5,000 for each Lead Plaintiff for their time and expenses incurred in representing the Settlement Class. The net recovery for Settlement Class Members (also referred to as the Net Settlement Fund) is estimated to be at least $12,015,000 ($18,000,000 minus all of the foregoing fees and expenses). 

If you have not received the detailed Notice of Pendency and Proposed Settlement of Class Action  and a copy of the Proof of Claim and Release form, you may obtain copies of them free of charge by visiting the Settlement website at www.BeautyHealthSecuritiesLitigation.com, sending an email to [email protected], or writing to BeautyHealth Securities Settlement, c/o Stretto, 410 Exchange, Suite 100, Irvine, CA 92602.

If you are a Settlement Class Member and wish to share in the distribution of the Net Settlement Fund, you must submit a Proof of Claim by mail postmarked or received no later than January 19, 2027, or electronically no later than January 19, 2027, establishing that you are entitled to recovery.  Failure to submit your Proof of Claim by January 19, 2027, will subject your claim to possible rejection and may preclude you from receiving any payment from the Settlement.  If you are a Settlement Class Member, you will be bound by the Settlement and any judgment entered in the Action, whether or not you submit a Proof of Claim.

EXCLUSION FROM THE CLASS - Each Settlement Class Member will be bound by all determinations and judgments in this Action, whether favorable or unfavorable, unless such person or entity mails or delivers a written Request for Exclusion from the Settlement Class in accordance with all the instructions set forth in the Notice that is received, not simply postmarked, on or before November 24, 2026. 

To object to any aspect of the Settlement, including the Plan of Allocation, or the applications for attorneys' fees and expenses (including any awards to Lead Plaintiffs), you must submit a written objection in accordance with all the instructions set forth in the Notice that is received or filed, not simply postmarked, on or before November 24, 2026.  If you object, but also want to be eligible for a payment from the Settlement, you must still submit a timely Proof of Claim.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE.

If you have any questions about the Settlement, you may contact Lead Counsel at the following address:

Lead Counsel

Lucas E. Gilmore
HAGENS BERMAN SOBOL SHAPIRO LLP
715 Hearst Avenue, Suite 300
Berkeley, CA 94710
Telephone: (510) 725-3000
Facsimile: (510) 725-3001
[email protected]

DATED: October 6, 2026

BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

SOURCE Hagens Berman Sobol Shapiro LLP