INVESTOR ALERT: Securities Class Action Filed Against Coty Inc. – Investors Encouraged to Contact Kirby McInerney LLP
INVESTOR ALERT: Securities Class Action Filed Against Coty Inc. – Investors Encouraged to Contact Kirby McInerney LLP
NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired Coty Inc. (“Coty” or the “Company”) (NYSE:COTY) securities during the period of November 5, 2025 through February 4, 2026, inclusive (“the Class Period”).
If you suffered a loss on your Coty investments, you have until May 22, 2026 to request lead plaintiff appointment. Courts do not consider lead plaintiff applications submitted after this deadline. If you choose to take no action, you may remain an absent class member. For more information about the lawsuit:
[CONTACT THE FIRM IF YOU SUFFERED A LOSS]
What Is This Lawsuit About? The lawsuit alleges that Coty made false and/or misleading statements and/or failed to disclose the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment.
On February 4, 2026, the Company released prepared remarks for Coty’s second quarter earnings for fiscal year 2026. Among other things, the company stated that “our performance versus the market has been inconsistent. In Prestige fragrances … our sell-out was flattish, underperforming the market by several points in the critical fragrance category. In Consumer Beauty, we continue to see a large gap in our sell-out performance relative to U.S. mass cosmetics category, though the recent changes we implemented are starting to show some modest improvement.” The Company also stated that “[n]ext steps … [include] … leveraging AI to scale content creation at a fraction of the cost and reexamining the full value chain … [w]hile these interventions helped stabilize and grow Consumer Beauty several years ago, operational discipline has slipped across the organization over the past 2 years.” These statements directly contradicted the Company’s statements made during the Company’s first quarter fiscal year 2026 earnings release on November 5, 2025 when Coty supported its original growth outlook for the second half of 2026 through new product launches and brand innovation, operational fixes in the Consumer Beauty segment and AI implementation throughout its operations while also minimizing risks from slowing growth in the beauty market. In truth, Coty’s Consumer Beauty segment was underperforming, margins were compressed by increased marketing investments and there was slowing growth in the Prestige fragrance market. On this news, the price of Coty shares declined by $0.28 per share, or approximately 8.2%, from $3.43 per share on February 4, 2026 to close at $3.15 on February 5, 2026.
On February 5, 2026, Coty announced its financial results for the second quarter fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company’s near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of “operational discipline” in both Prestige and Consumer Beauty segments. On this news, the price of Coty shares declined by $0.49 per share, or approximately 15.6%, from $3.15 per share on February 5, 2026 to close at $2.66 on February 6, 2026.
[LEARN MORE ABOUT THE LAWSUIT]
The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.
[LEARN MORE ABOUT THE LEAD PLAINTIFF PROCESS]
What Should I Do? If you purchased or otherwise acquired Coty securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
investigations@kmllp.com
