Huda Beauty case closed by US judge after class-action settlement

Lawsuit involved hidden warning labels and reports of rashes and eye swelling from use of 'Neon Obsessions' make-up palettes

Images from a court filing for Dubai-based make-up company Huda Beauty settling a US lawsuit. Photo: Public record

A US court has approved the final settlement of a class-action lawsuit against Dubai-based make-up company Huda Beauty over some of the colour additives used in its “Neon Obsessions” make-up palettes.

Plaintiffs in the case had argued that Huda Beauty had marketed the brightly coloured make-up for use around the eyes and as eyeshadow, even though some of the ingredients were not safe for such use.

Some users “suffered physical injuries including, but not limited to, rashes, painful eye irritation, and skin inflammations and discolourations”, the original complaint filed in May 2020 states.

“Many of these symptoms are painful, embarrassing and last for several days.”

The lawsuit stated that the US Food and Drug Administration had not approved some of the Neon Obsession pigments for use near the eye.

Instead of warning users, the product had only a “hidden disclaimer” underneath another label that stated the make-up was not intended for use around the eyes.

In a 21-page ruling filed last week in a California court, Judge Jesus Bernal approved the final settlement of a class-action lawsuit in which Neon Obsessions users could claim a cash refund of up to $87.

HB USA Holdings Inc, which does business as Huda Beauty, was ordered to pay about $1.2 million in lawyer fees. The judge ordered Huda Beauty to pay up to $545,000 plus processing fees to settle the case with customers.

The products in question are no longer sold in the US, but if they are re-released, the judge said they must include a clear warning.

The warning must include “for US customers: may contain colour additives that are not approved by the FDA for use in the eye area” or similar language, the settlement reads.

An email to Huda Beauty's US legal team was not immediately returned.

Huda Beauty was founded in 2013 by make-up artist-turned-blogger Huda Kattan. As of 2021, Huda Beauty was earning more than $250 million a year, and was worth an overall $1.2 billion.