Brian Lee, chief executive and co-founder along with actress Jessica Alba of the Honest Co.

Brian Lee, chief executive and co-founder along with actress Jessica Alba of the Honest Co.

Actress Jessica Alba’s Honest Co. has reached a $7.35 million settlement in a marketing fraud lawsuit that alleged the company fraudulently labeled home and personal care products as natural, plant-based or chemical-free.

The Playa Vista-based company was accused of dishonestly advertising consumer products, such as toothpaste, floor cleaners and laundry detergent, as free of harsh chemicals, but independent test showed that the products contained synthetic and toxic ingredients, Reuters reported. Alba co-founded the company in 2011.

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.

“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.

Under the settlement, customers of Honest Co. are entitled to receive a $2.50 payment or credit for each eligible product purchased. There is a 10-product limit for customers without proof of purchase and no maximum for shoppers with proof.

The company reported revenue of $250 million in 2015, up from $150 million in 2014, putting it at No. 91 on the Business Journal’s list of largest private companies by revenue in Los Angeles County.

Technology reporter Garrett Reim can be reached at greim@labusinessjournal.com. Follow him on Twitter @garrettreim for the latest in L.A. tech news.