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<p xmlns="http://www.w3.org/1999/xhtml"><span xmlns="http://www.w3.org/1999/xhtml" class="legendSpanClass">SAN FRANCISCO</span>, <span xmlns="http://www.w3.org/1999/xhtml" class="legendSpanClass">April 21, 2026</span> /PRNewswire/ -- Coty Inc. <b xmlns="http://www.w3.org/1999/xhtml">(NYSE:<a class="ticker" href="https://www.benzinga.com/quote/COTY">COTY</a>)</b> faces a securities class action lawsuit which seeks to represent investors who purchased or otherwise acquired Coty common stock between November 5, 2025 and February 4, 2026.</p>
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<p xmlns="http://www.w3.org/1999/xhtml">The lawsuit follows Coty&#39;s February 5, 2026 Q2 2026 earnings report, depicting serious operational issues, and the abrupt departure of its CEO (Sue Y. Nabi).</p><p xmlns="http://www.w3.org/1999/xhtml">This news drove the price of Coty shares down over 8% that day.</p><p xmlns="http://www.w3.org/1999/xhtml">The developments have prompted national shareholders rights firm Hagens Berman to investigate claims that Coty violated the federal securities laws.</p><p xmlns="http://www.w3.org/1999/xhtml">The firm urges investors in Coty who suffered significant losses to <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1875430661&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2Finvestor-fraud%2Fcoty&amp;a=submit+your+losses+now" target="_blank" rel="nofollow">submit your losses now</a>. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Class Period: </b>Nov. 5, 2025 – Feb. 4, 2026<br xmlns="http://www.w3.org/1999/xhtml"></br><b xmlns="http://www.w3.org/1999/xhtml">Lead Plaintiff Deadline: </b>May 22, 2026<br xmlns="http://www.w3.org/1999/xhtml"></br><b xmlns="http://www.w3.org/1999/xhtml">Visit:</b> <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1492350275&amp;u=http%3A%2F%2Fwww.hbsslaw.com%2Finvestor-fraud%2Fcoty&amp;a=www.hbsslaw.com%2Finvestor-fraud%2Fcoty" target="_blank" rel="nofollow">www.hbsslaw.com/investor-<span xmlns="http://www.w3.org/1999/xhtml">fraud</span>/coty</a><br xmlns="http://www.w3.org/1999/xhtml"></br><b xmlns="http://www.w3.org/1999/xhtml">Contact the Firm Now:</b> <a xmlns="http://www.w3.org/1999/xhtml" href="mailto:COTY@hbsslaw.com" target="_blank" rel="nofollow">COTY@hbsslaw.com</a></p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Coty Inc. (COTY) Securities Class Action: </b></p><p xmlns="http://www.w3.org/1999/xhtml">Coty is one of the world&#39;s largest beauty companies, with brands across fragrance, color cosmetics, and skin and body care. The company operates through two segments – Prestige and Consumer Beauty.</p><p xmlns="http://www.w3.org/1999/xhtml">The lawsuit is focused on the propriety of Coty&#39;s disclosures about business trends within these segments.</p><p xmlns="http://www.w3.org/1999/xhtml">Specifically, on November 5, 2025, in connection with the company&#39;s Q1 2026 financial results, Coty assured investors that it expected improvement in sales trends over the course of fiscal 2026. Nabi specifically assured investors that &#34;we remain laser focused on strengthening our profitability and balance sheet, with our fiscal year 2026 business trends steadily improving in line with our expectations.&#34; The company reaffirmed its FY 2026 adjusted EBITDA target of $1 billion.</p><p xmlns="http://www.w3.org/1999/xhtml">The complaint <span xmlns="http://www.w3.org/1999/xhtml">alleges</span> that Coty made false and misleading statements while failing to disclose that the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments, and Prestige fragrance growth was slowing. </p><p xmlns="http://www.w3.org/1999/xhtml">Investors began to learn the truth a few weeks after the Q1 report when, on December 12, 2025, Coty announced without explanation the departure of CEO Nabi, driving the price of Coty shares significantly lower.</p><p xmlns="http://www.w3.org/1999/xhtml">Then, on February 5, 2026, the company announced its Q2 2026 financial results, revealing that Consumer Beauty&#39;s operating income plummeted over 70% from the year earlier period. In addition, though less severe, Prestige&#39;s operating income fell over 18% from the year earlier period. Coty also withdrew its FY 2026 EBITDA and free cash flow guidance.</p><p xmlns="http://www.w3.org/1999/xhtml">Management said during the earnings call that day, &#34;[f]or Q3, we expect like-for-like revenue trends to decline mid-single digits, driven primarily by bigger declines in Consumer Beauty[]&#34; and revealed &#34;we estimate that the headwinds from retailer destocking significantly reduced in the quarter, the promotional environment intensified as we moved through the holiday period and remains elevated, which is a headwind to net sales and, by extension gross margin.&#34;</p><p xmlns="http://www.w3.org/1999/xhtml">This news drove the price of Coty shares down over 8% that day.</p><p xmlns="http://www.w3.org/1999/xhtml">&#34;We&#39;re investigating whether Coty may have intentionally misled investors about its segment business trends and, if so, whether the year-over-year softness might be related to earlier reported destocking issues. We&#39;re also looking at the circumstances surrounding Ms. Nabi&#39;s abrupt and unexplained departure. &#34; said Reed Kathrein, the Hagens Berman partner leading the investigation.</p><p xmlns="http://www.w3.org/1999/xhtml">If you invested in Coty and have substantial losses, or have knowledge that may assist the firm&#39;s investigation, <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1875430661&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2Finvestor-fraud%2Fcoty&amp;a=submit+your+losses+now" target="_blank" rel="nofollow">submit your losses now</a> »</p><p xmlns="http://www.w3.org/1999/xhtml">If you&#39;d like more information and answers to frequently asked questions about the Coty case and the firm&#39;s investigation, <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1863082431&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoty-inc-coty-securities-class-action&amp;a=read+more+%C2%BB" target="_blank" rel="nofollow">read more »</a></p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Whistleblowers: </b>Persons with non-public information regarding Coty should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. </p><p xmlns="http://www.w3.org/1999/xhtml"><a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=4228091569&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2F&amp;a=About+Hagens+Berman" target="_blank" rel="nofollow">About Hagens Berman</a><br xmlns="http://www.w3.org/1999/xhtml"></br>Hagens Berman is a global plaintiffs&#39; rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman&#39;s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=431711112&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2F&amp;a=hbsslaw.com" target="_blank" rel="nofollow">hbsslaw.com</a>. Follow the firm for updates and news at <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=589737094&amp;u=https%3A%2F%2Fwww.twitter.com%2FClassActionLaw&amp;a=%40ClassActionLaw" target="_blank" rel="nofollow">@ClassActionLaw</a>. </p>



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COTY

COTY Lawsuit Alleges Company Misled Analysts - Coty Inc. Investors Face Losses -- Hagens Berman

Coty faces securities class action amid CEO exit and poor earnings

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;p xmlns=&quot;http://www.w3.org/1999/xhtml&quot;&gt;&lt;span xmlns=&quot;http://www.w3.org/1999/xhtml&quot; class=&quot;legendSpan...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Coty Inc. is facing a securities class action lawsuit following a disappointing earnings report highlighting serious operational issues and the sudden departure of its CEO. Investors who acquired shares between November 2025 and February 2026 may face financial losses as the lawsuit investigates potential misrepresentation of business conditions.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Coty faces a class action lawsuit for misleading investors.</li><li>Class period includes purchases from Nov 5, 2025 to Feb 4, 2026.</li><li>February&#039;s earnings report revealed serious operational issues.</li><li>CEO Sue Y. Nabi&#039;s abrupt departure raised investor concerns.</li><li>Coty&#039;s stock dropped over 8% following adverse financial revelations.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Coty Inc. (COTY)</strong>: Facing legal and operational challenges that may impact stock performance.</li><li><strong>Hagens Berman Sobol Shapiro LLP (N/A)</strong>: Representing investors in the class action lawsuit against Coty.</li></ul>
  </section>

  <section data-block="category">
    <h3>Legal</h3>
    <p>This situation falls under &#039;Legal&#039; due to the active securities class action lawsuit against Coty. Legal issues can have significant implications for investor perception and stock price volatility.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Coty&#039;s stock declined by over 8% after negative Q2 earnings.</li><li>The class action lawsuit could strain Coty&#039;s financial resources and public image.</li><li>Legal proceedings may delay any potential recovery in share price.</li><li>Operational issues could lead to further adjustments in earnings guidance.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Class action lawsuit covers shares purchased from Nov 5, 2025 - Feb 4, 2026.</li><li>The lead plaintiff deadline is set for May 22, 2026.</li><li>Q2 2026 earnings revealed a 70% drop in Consumer Beauty operating income.</li><li>Coty withdrew its FY 2026 EBITDA and free cash flow guidance.</li><li>CEO Sue Y. Nabi departed on December 12, 2025, without explanation.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>COTY is expected to experience downward pressure in the short term due to legal uncertainties and negative earnings revisions.</p>
  </section>
</section>


<article>
    <h2>Coty Inc. Faces Class Action Lawsuit Amid Allegations of Misleading Investors</h2>
    <p>San Francisco, April 21, 2026 /PRNewswire/ -- Coty Inc. <strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/quote/COTY">COTY</a>)</strong> is embroiled in a securities class action lawsuit that targets investors who acquired Coty common stock from November 5, 2025, to February 4, 2026. This legal action follows serious operational challenges disclosed in the company’s recent earnings report, alongside the unexpected departure of CEO Sue Y. Nabi.</p>
    
    <h3>Key Details of the Lawsuit</h3>
    <p>The lawsuit arises after Coty released its Q2 2026 earnings report on February 5, 2026, revealing significant operational setbacks. As a result of these disclosures, Coty’s stock price fell by over 8% on that day. The national shareholder rights firm Hagens Berman is leading the investigation into potential violations of federal securities laws by Coty.</p>
    
    <h3>Investor Actions Recommended</h3>
    <p>Hagens Berman is encouraging investors who have sustained significant losses related to their investments in Coty to <a href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1875430661&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2Finvestor-fraud%2Fcoty&amp;a=submit+your+losses+now" target="_blank" rel="nofollow">submit their losses now</a>. The firm is also reaching out to individuals who may have information that could aid in the ongoing investigation.</p>
    
    <h3>Class Period Information</h3>
    <ul>
        <li><strong>Class Period:</strong> November 5, 2025 – February 4, 2026</li>
        <li><strong>Lead Plaintiff Deadline:</strong> May 22, 2026</li>
        <li><strong>Contact Us:</strong> <a href="mailto:COTY@hbsslaw.com" target="_blank" rel="nofollow">COTY@hbsslaw.com</a></li>
    </ul>

    <h3>Background on Coty Inc.</h3>
    <p>Coty Inc., known as one of the largest beauty companies globally, operates through two segments: Prestige and Consumer Beauty. The focus of the lawsuit centers around the accuracy of Coty’s disclosures regarding business trends within these market segments. On November 5, 2025, during its Q1 2026 financial results announcement, Coty reassured investors of expected sales improvements throughout fiscal 2026. CEO Nabi emphasized that the company was, "laser-focused on strengthening our profitability and balance sheet," while reaffirming a target of $1 billion in adjusted EBITDA for FY 2026.</p>
    
    <h3>Allegations of Misleading Statements</h3>
    <p>The complaint alleges that Coty provided misleading statements and failed to disclose operational challenges faced in the Consumer Beauty market. Specifically, this included information regarding compressed margins due to increased marketing expenditures and a slowdown in Prestige fragrance growth. The situation escalated when Coty announced CEO Nabi's departure on December 12, 2025, affecting stock prices adversely.</p>

    <h3>Recent Financial Report Findings</h3>
    <p>In the Q2 2026 report released on February 5, 2026, Coty reported a dramatic **70% decline** in the operating income of its Consumer Beauty segment compared to the previous year. Furthermore, the Prestige segment also exhibited a decline of **18%** in operating income. Following this, Coty withdrew its full-year 2026 EBITDA and cash flow guidance.</p>
    
    <p>Management indicated that for Q3, they expect mid-single-digit declines in revenue trends, attributing slowdowns mainly to significant drops in the Consumer Beauty sector. They highlighted ongoing pressures such as retailer destocking and intensified promotional environments, which are adversely affecting net sales and gross margins.</p>
    
    <h3>Investigation Overview</h3>
    <p>Reed Kathrein, a partner at Hagens Berman, stated, "We’re investigating whether Coty may have intentionally misled investors about its segment business trends. Additionally, we're examining the circumstances surrounding Ms. Nabi’s abrupt departure." This investigation aims to discern whether the operational struggles reported may have earlier consequences tied to destocking issues.</p>

    <p>If you have suffered substantial losses from investing in Coty or possess knowledge pertinent to the firm’s investigation, it is advisable to <a href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1875430661&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2Finvestor-fraud%2Fcoty&amp;a=submit+your+losses+now" target="_blank" rel="nofollow">submit your losses now</a>.</p>
    
    <h3>Whistleblower Information</h3>
    <p>Individuals with non-public information relevant to Coty are encouraged to consider their options for helping the investigation or participating in the SEC Whistleblower program, which could yield rewards of up to 30% of any successful recovery made by the SEC.</p>
    
    <h3>Learn More About the Case</h3>
    <p>For further information or answers to frequently asked questions regarding the Coty case and the investigation, please visit <a href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4670080-1&amp;h=1863082431&amp;u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoty-inc-coty-securities-class-action&amp;a=read+more+%C2%BB" target="_blank" rel="nofollow">Hagens Berman's official site</a>.</p>
</article>

Coty Inc. is facing a securities class action lawsuit following a disappointing earnings report highlighting serious operational issues and the sudden departure of its CEO. Investors who acquired shares between November 2025 and February 2026 may face financial losses as the lawsuit investigates potential misrepresentation of business conditions.

COTY Lawsuit Alleges Company Misled Analysts - Coty Inc. Investors Face Losses -- Hagens Berman

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Legal

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