SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased or otherwise acquired the common stock of Coty Inc. (“Coty” or the “Company”) pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with its June 13, 2013 initial public offering (“IPO”).
If you purchased or acquired Coty common stock pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with its IPO, you may move the Court for appointment as lead plaintiff by no later than April 14, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Coty investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Coty Securities Class Litigation
Coty, headquartered in New York, New York, is a beauty company with a portfolio of brands in three segments: Fragrances, Color Cosmetics, and Skin & Body Care. The actions allege that defendants violated the Securities Act of 1933 because the Registration Statement contained materially false and misleading statements about Coty’s business and growth prospects. Specifically, in the Registration Statement, defendants misrepresented and/or failed to disclose that in the months leading up to the IPO (i) consumption of Coty’s products was materially declining and retail customers were “destocking” or returning products to Coty; (ii) Coty’s sales growth of nail products such as Sally Hansen had materially declined such that sales were flat by the time of the IPO, and were negative in July 2013; and (iii) mass retailers were destocking their Coty inventory, a material negative trend that led to a decline in Coty’s revenue.
On September 17, 2013, Coty issued a press release announcing its financial results for the fourth fiscal quarter ending June 30, 2013. In the release, Coty revealed that “[o]ver the last few months, the Company has seen a deceleration of market growth in the U.S. and Europe, triggering significant trade de-stocking activity, particularly by U.S. mass retailers.” As a consequence, Coty estimated that net revenues in the first quarter of fiscal 2014 would decline compared to the same period in fiscal 2013. Following this announcement, Coty stock fell $0.61 per share, or 3.8%, from its closing price of $16.25 per share on September 16, 2013, to close at $15.64 per share on September 17, 2013. Since the Company’s IPO on June 13, 2013, the price of Coty stock has fallen significantly from its IPO price of $17.50.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eleven consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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