All closed settlements

Closed

Huda Beauty Neon Obsessions Settlement

The claim window closed on January 12, 2022. The court granted final approval in July 2022, and refunds were paid by late summer 2022.

Case record

Case
Ramirez, et al. v. HB USA Holdings, Inc.
Case no.
5:20-cv-01016-JGB-SHK
Court
U.S. District Court for the Central District of California, Riverside
Defendant
HB USA Holdings, Inc. d/b/a Huda Beauty
Administrator
Digital Settlement Group
Settlement fund
Claims-made (~$545,000 in approved claims; $1.2 million in fees paid separately)

The case

What this settlement was about

This class action alleged that Huda Beauty's Neon Obsessions Pressed Pigment Palettes, Neon Green, Neon Orange, and Neon Pink, were unlawfully marketed in the U.S. for use in the eye area even though they contained color additives not approved by the FDA for use around the eyes, without disclosing that on the label. The complaint claimed consumers suffered rashes, painful eye irritation, and skin inflammation.

Huda Beauty denied wrongdoing and maintained the products were safe, the pigments at issue are legal in eye products in the EU and elsewhere; the case turned on the narrower U.S. FDA rule restricting certain color additives from the eye area.

The claims-made settlement had no fixed fund: approved claims totaled roughly $545,000, and Huda Beauty separately paid $1.2 million in attorneys' fees, so fees did not reduce class payments. The $29-per-palette refund matched the retail price, meaning claimants with receipts could effectively get a full refund on up to three palettes. The palettes were no longer sold in the U.S. by the time the case closed.

The class

Who was covered

Anyone who purchased any variety of the Huda Beauty Neon Obsessions Pressed Pigment Palette in the United States on or before August 15, 2021.

  • What class members could receive$29 per palette for up to 3 palettes ($87 maximum) with proof of purchase or direct notice; $10 per household ($30 maximum) without proof. Paid by check or electronically via PayPal or Venmo.
  • Proof requirementMost class members could file without proof of purchase.
  • Claim deadlinePassed on Jan 12, 2022. New claims are no longer accepted.

Docket timeline

How the settlement unfolded

  1. May 2020
    Class action filed

    Cristie Ramirez and Natalie Linarte sued Huda Beauty in the Central District of California.

  2. August 15, 2021
    Class period ends

    Purchases through this date qualified for the settlement.

  3. January 12, 2022
    Claim deadline

    Claims, exclusions, and objections were all due the same day.

  4. July 2022
    Final approval

    Judge Jesus Bernal approved the settlement and closed the case in late July 2022.

  5. August–September 2022
    Payments distributed

    Payments were due within 21 days after final approval and resolution of any appeals.

Questions people still ask

Frequently asked questions

Can I still file a Neon Obsessions claim?

No. The deadline to file was January 12, 2022, and the settlement was approved and the case closed in July 2022. The claims process is closed.

How much did the Neon Obsessions settlement pay?

Claimants with proof of purchase (or who received direct notice) got $29 per palette for up to 3 palettes, a maximum of $87, effectively a full refund at the retail price. Without proof, the cap was $10 per household, up to $30.

What was wrong with the palettes?

The lawsuit alleged the palettes were marketed for eye-area use even though they contained color additives not approved by the FDA for use around the eyes, and that some users suffered rashes, eye irritation, and skin inflammation.

Were the palettes actually unsafe?

Huda Beauty maintained they were safe, and the pigments are legal in eye products in the EU and elsewhere. The case turned on the narrower U.S. FDA rule restricting certain color additives from the eye area, not on a finding of harm.

Are Neon Obsessions palettes still sold in the U.S.?

No. The palettes were no longer sold in the United States by the time the case closed. If they are ever reintroduced as formulated, packaging showing eye-area use must carry an FDA warning under the settlement's injunctive relief.

Sources for this record

Official site neonobsessionssettlement.com has been retired. Record preserved by TapClaim.