Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Coty Inc. (“Coty” or the “Company”) (NYSE: COTY) common stock between November 5, 2025 and February 4, 2026, inclusive (the “Class Period”). Coty investors have until May 22, 2026 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR COTY INC. (COTY) INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS
What Happened?
On February 5, 2026, Coty released its second quarter fiscal 2026 financial results, revealing results below market expectations, including that net revenue decreased 6% on a like-for-like basis, reported gross margins decreased 200 basis points, and adjusted operating income declined 19%. The Company also withdrew its 2026 guidance for EBITDA and lowered its near-term outlook, stating “Coty anticipates Q3 gross margins to decline 200 to 300 basis points” and “approximately breakeven EPS.”
In the Company’s earnings call, recently appointed interim CEO, Markus Strobel, noted “we have not been delivering at the level we should” and the Company would need to invest in “disciplined execution, operational effectiveness and sufficient multiyear marketing support.” The Company’s CFO, Laurent Mercier also noted “the main headwind is from Consumer Beauty.”
On this news, Coty’s stock price fell $0.49, or 15.56%, to close at $2.66 per share on February 6, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Coty’s Consumer Beauty segment was underperforming; (3) margins were compressed by increased marketing investments; (3) there was slowing growth in the Prestige fragrance marker; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Coty common stock during the Class Period, you may move the Court no later than May 22, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
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If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260330642467/en/
