Coty Inc. Class Action Lawsuit – COTY

Introduction to Coty Inc. (COTY) Securities Class Action Lawsuit

A securities fraud class action has been filed against Coty Inc. (NYSE: COTY), a publicly traded mid-cap company in the global beauty and personal care sector listed on the New York Stock Exchange (NYSE: COTY), and two of its executives in the U.S. District Court for the Southern District of New York. The lawsuit covers investors who purchased or acquired Coty common stock between November 5, 2025, and February 4, 2026. Investors allege that the company misrepresented its growth potential for fiscal year 2026, including forward-looking guidance on like-for-like revenue and adjusted profitability, claiming business trends were improving and projecting a return to sales and profit growth in the second half of the year. In reality, the complaint alleges, defendants issued materially misleading business information in violation of federal securities laws, Coty’s Consumer Beauty segment was underperforming, margins were compressed by increased marketing investments, and its Prestige fragrance segment was experiencing slowing growth. These alleged misstatements caused investors to purchase Coty securities at artificially inflated prices before the truth emerged in early February 2026, following disappointing second quarter fiscal 2026 results and the withdrawal of prior fiscal 2026 EBITDA guidance.

Coty Inc. (COTY) Securities Lawsuit Case Details

Case Name: Suvega Srinivasan v. Coty Inc., et al.

Case No.: 1:26-cv-02343

Jurisdiction: U.S. District Court, Southern District of New York

Filed on: March 23, 2026

Coty Inc. (COTY) Company Profile

Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide, and its common stock trades on the New York Stock Exchange under the ticker COTY, as a mid-cap consumer company. The company operates through two segments-Prestige and Consumer Beauty-providing fragrance, color cosmetics, and skin and body care products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops.

Coty Inc. (COTY) Securities Lawsuit Class Period

November 5, 2025 – February 4, 2026, inclusive.

All investors who purchased or otherwise acquired Coty common stock during the Class Period are potentially eligible to participate in the class action, including purchasers of NYSE: COTY shares.

Allegations in the Coty Inc. (COTY) Securities Class Action Lawsuit

The complaint targets Coty Inc., Chief Executive Officer Sue Nabi, and Chief Financial Officer Laurent Mercier for allegedly misleading investors about the company’s growth prospects during fiscal year 2026 through optimistic forward-looking guidance. On November 5, 2025, CEO Sue Nabi announced in a press release and earnings call that Coty’s underlying business trends were already improving, in line to slightly ahead of expectations, particularly in Prestige. She stated the company saw tremendous potential to accelerate momentum through new brand launches, innovations, market-leading e-commerce, and globally scaled brick-and-mortar presence, and expected second quarter sales at the more favorable end of previous guidance, reinforcing the company’s forward-looking guidance narrative with a return to sales and profit growth in the second half of fiscal year 2026.

The following day, on November 6, 2025, CFO Laurent Mercier reinforced this optimism during an earnings call, stating that the company continued to expect sales (like-for-like revenue) to return to growth in the second half as sell-in and sell-out reached alignment, supported by key launches in Prestige and more favorable comparisons. He also projected adjusted EBITDA, a non-GAAP profitability metric, to return to growth in the second half, targeting around $1 billion for the year.

According to the complaint, these statements concealed material adverse facts about the true state of Coty’s business. Investors allege that the Consumer Beauty segment was actually underperforming, margins were being compressed by increased marketing investments, and the Prestige fragrance segment was experiencing slowing growth rather than the improvement executives publicly described, amounting to materially misleading disclosures under federal securities laws.

The Truth Emerges

The alleged deception began to unravel on February 4, 2026, when newly appointed Interim CEO Markus Strobel delivered prepared remarks acknowledging that Coty’s financial results in the past 18 months had been disappointing. He admitted that the company’s performance versus the market had been inconsistent, and in the second quarter, sell-out was flat, underperforming the market by several points in the critical fragrance category. Strobel conceded that while Coty had outstanding assets and capabilities, the company had not been delivering at the level it should.

The next day, on February 5, 2026, Coty announced its second quarter results and issued a press release revealing disappointing earnings and a like-for-like revenue decline of approximately 3% in the quarter with worsening performance in the Consumer Beauty segment. The company withdrew its prior fiscal year 2026 guidance for EBITDA and free cash flow and provided guidance solely for Q3 due to what CFO Laurent Mercier described as operational discipline that had slipped across the organization over the past two years. These revelations directly contradicted the executives’ prior statements about improving business trends and returning to growth.

Market Reaction

Investors reacted swiftly to these disclosures, with NYSE: COTY shareholders seeing sharp losses. After the market closed on February 4, 2026, following Strobel’s prepared remarks, Coty’s common stock declined from a closing price of $3.43 per share to $3.15 per share on February 5, 2026 on the New York Stock Exchange, a drop of approximately 8%. The decline accelerated after Coty’s formal earnings announcement and guidance withdrawal. On February 6, 2026, the stock fell further to $2.66 per share, an additional 16% decline from the previous day’s close. Over the two-day period from February 4 to February 6, 2026, Coty’s stock price fell a total of $0.77 per share, representing a decline of approximately 22%.

Next Steps

● The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

● The Court will then consider motion for class certification.

● The Court will later consider a Motion to Dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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Certification of Plaintiff Pursuant to Federal Securities Laws

I, duly certify and say, as to the claims asserted under the federal securities laws, that:

I have reviewed a complaint filed in the action.
I did not purchase the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this action.
I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.
My transaction(s) in Coty Inc. which are the subject of this litigation during the class period set forth in the complaint are set forth in the chart attached hereto.
Within the last 3 years,
I have not sought to serve nor have I served as a class representative in any federal securities fraud case. I have sought to serve as a class representative in
I will not accept any payment for serving as a representative party on behalf of the class beyond the Plaintiff's pro rata share of any recovery, except as ordered or approved by the court, including any award for reasonable costs and expenses (including lost wages) directly relating to the representation of the class.

Are you US Citizen?

Yes. I certify under penalty of perjury that the foregoing is true and correct. Executed this No. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this

Clear

Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

By your signature above, you confirm that have retained Levi & Korsinsky, LLP to represent you and the shareholder class as a lead plaintiff in the pending class action against Coty Inc. This representation will be on a contingency basis, meaning that Levi & Korsinsky will advance all expenses in the litigation and will only seek compensation and/or reimbursement of expenses if the firm obtains a recovery. Regardless of the result, we will never ask you to directly pay for any attorneys’ fees, expenses, or costs. Should we obtain a favorable result, we may ask the court to award us compensation and reimbursement of expenses to be paid by the defendants or as a portion of any class recovery. In exchange for our representation, you agree to cooperate as our client by providing, for example, relevant documents and deposition testimony, if necessary. During the course of this litigation, we may employ and/or work with other law firms, experts, and third-parties to successfully prosecute this action. If you are not appointed as the lead plaintiff or Levi & Korsinsky is not appointed as lead counsel, we will notify you of such decision at which time this representation will end unless otherwise extended by you and the firm. We look forward to working with you towards a successful resolution of this action.

I have reviewed the complaint linked in paragraph 1