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COTY INVESTOR ALERT: Coty Inc. is Being Investigated for Securities Fraud after Excess Inventory Levels Lead to 21% Stock Drop – Investors Urged to Contact BFA

1. Coty Inc. is under investigation for potential federal securities law violations. 2. The company reported declining sales due to overstocked inventories and execution weaknesses. 3. Coty’s prestige fragrance line, crucial for revenue, is experiencing decreased demand. 4. Coty stock fell over 21% following disappointing financial results. 5. Legal options are available for Coty investors regarding this investigation.

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FAQ

Why Very Bearish?

The ongoing investigation and declining sales have severely damaged investor confidence in Coty. Historical examples include other firms experiencing stock drops under similar investigations, leading to continued bearish sentiment.

How important is it?

The investigation brings significant potential legal and financial ramifications for Coty, impacting investor sentiment and stock value. Given the company's declining financial performance, the current news cycle reinforces apprehension toward its market position.

Why Short Term?

The immediate impact from the legal scrutiny and dropped stock price will likely affect Coty in the short-term. Past occurrences highlight rapid stock price reactions during scandals or investigations that can continue for several months to stabilize.

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NEW YORK, Sept. 24, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Coty Inc. (NYSE: COTY) for potential violations of the federal securities laws. If you invested in Coty, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/coty-inc-class-action. Why Is Coty being Investigated?Coty is one of the world’s largest beauty companies with a portfolio of brands across fragrance, color cosmetics, and skin and body care. Fragrances are categorized as either Prestige fragrances or mass fragrances, with Prestige fragrances accounting for 60% of the Company’s revenues. During the relevant period, Coty touted its Prestige fragrance demand while noting that retailers were keeping inventory “tight.” In reality, it appears that retailers were overstocked with inventory because demand for Coty’s products had declined. The Stock Declines as the Truth Is RevealedOn August 20, 2025, Coty reported disappointing 4Q and FY 2025 financial results due to “delay[s] in [identifying] weaknesses in our U.S. execution, retailer inventory buildup and headwinds from lapping fiscal year ’24 innovation, all of which were significant pressure points in fiscal year ‘25.” The Company also stated that it experienced a slowdown in cosmetics due to “value-seeking behavior, some fatigue with innovation . . . [and] U.S.-specific factors like in-store and anti-theft measures and immigration policy changes.” On this news the price of Coty stock declined $1.05 per share, over 21%, from $4.86 per share on August 20, 2025, to $3.81 per share on August 21, 2025.Click here for more information: https://www.bfalaw.com/cases/coty-inc-class-action. What Can You Do? If you invested in Coty you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses. Submit your information by visiting: https://www.bfalaw.com/cases/coty-inc-class-action Or contact:Ross Shikowitzross@bfalaw.com212.789.3619 Why Bleichmar Fonti & Auld LLP? BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd. For more information about BFA and its attorneys, please visit https://www.bfalaw.com. https://www.bfalaw.com/cases/coty-inc-class-action Attorney advertising. Past results do not guarantee future outcomes.

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