Olaplex Holdings Inc. (NASDAQ: OLPX) announced a settlement agreement for shareholder derivative litigation filed against the company and its executives, according to a court filing.

The settlement, reached on April 24, 2026, resolves consolidated derivative actions including Ciuffo v. Dagousset and Hutchinson v. Advent International Corporation, both pending in the U.S. District Court for the Central District of California. The agreement also addresses a Section 220 demand for inspection of company records made by stockholder Kajeel Patel.

Under the terms, defendants' insurers will pay $700,000 in legal fees and expenses to plaintiffs' counsel, subject to court approval. The settlement also provides for service awards of $2,500 to each of the three plaintiffs, to be paid from the fee amount.

Olaplex will implement unspecified corporate governance reforms as part of the agreement. The settlement requires approval from shareholders who owned company stock as of April 24, 2026.

The defendants denied all allegations of wrongdoing and maintained they acted properly and in accordance with their fiduciary duties. They agreed to settle to avoid the costs and risks of continued litigation.

A settlement hearing is scheduled for July 27, 2026, at 1:30 p.m. before Judge Stephen V. Wilson in Los Angeles. Current shareholders have until July 6, 2026, to file objections to the proposed settlement.

The court preliminarily approved the settlement on May 7, 2026. Upon final approval, shareholders will be permanently barred from pursuing the derivative claims covered by the agreement.