The Morning Brief: The Honest Co. Settles Two Lawsuits

Glade Brook Capital Partners is a significant investor in the company, which was co-founded by actress Jessica Alba.


Honest Co., the website co-founded by actress Jessica Alba that bills itself as a seller of ecologically-safe baby and home goods, has settled its second lawsuit in the past week over misleading marketing claims. In the latest settlement, the plaintiffs claimed the company fraudulently labeled home and personal-care products as natural, plant-based or chemical-free, according to a Reuters report Monday. Terms were not disclosed. Last week, Honest agreed to a $1.55 million settlement of a federal lawsuit. In that case, the plaintiffs claimed the company sold laundry detergent, dish soap and other cleaners containing a skin irritant, which Honest Co. claimed it avoids, according to the report. As we earlier reported, Glade Brook Capital Partners is a significant investor in the company. Its investment is currently valued at $1.2 billion, which is 9 percent below its cost basis. In the first quarter, Honest Co. named Nick Vlahos as CEO. He was previously chief operating officer at Clorox Company.


UBS Group AG cut its price target on Buffalo Wild Wings from $185 to $175 following Marcato Capital Management’s mostly successful proxy fight with the casual dining restaurant chain. Marcato landed three of its four nominated directors on the company’s board of directors. UBS kept its “Buy” rating on the stock. “Greater change is likely once a new CEO is identified” and the exploration of strategic initiatives is expected, UBS said in a note to clients. It added that despite near-term earnings headwinds, “investors should begin to focus on opportunities for improved operating results” and the company’s 2018 outlook. The stock dropped 1.2 percent to close at $144.15 Monday.


Cliff Robbins’s Blue Harbour Group sold about 3.3 million shares of BWX Technologies, reducing its stake in the supplier of nuclear components and fuel to the U.S. government to 2 percent.