The proposed deal would settle four separate class action lawsuits and would return $2.50 as payment or credit for each Honest Co. product that class members purchased, up to ten products each.
“This settlement in no way changes the fact that our marketing practices are entirely appropriate and we will continue to market products as ‘natural,’” Honest Co. said in a statement.
Honest Co., co-founded by Alba in 2011, makes a wide range of household products that it says are free of harsh chemicals. The lawsuits cited independent tests which showed that the products contained synthetic and toxic ingredients, Reuters reported.
Honest Co. said it settled the lawsuit to limit the cost and distraction of litigation. The company denied that it had fraudulently labeled its products.