Coty, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Coty, Inc. (COTY)

If you purchased or acquired Coty securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Coty

Coty is a global beauty company known for its portfolio of fragrance, cosmetics, and skincare brands. The company operates in both prestige and mass-market segments, distributing products through a wide range of retailers and channels worldwide.

The company’s core operations rely heavily on its fragrance and consumer beauty divisions, which together account for over 60% of sales.

Potential Concerns Under Investigation

Lawyers are investigating whether Coty may have made misleading statements or omitted material information that affected investors during the class period from Feb. 19, 2025, through Aug. 19, 2025. Several events and disclosures during this time frame appear to have had a significant impact on Coty’s stock price and may have resulted in substantial losses for investors.

One major focus of the investigation is Coty’s financial update on Aug. 20, 2025, when the company announced its fiscal Q4 2025 results and sharply cut its guidance for the upcoming quarter.

Coty forecast like-for-like sales to decline 6 to 8% in Q1 FY2026, compared to a 4.5% increase the previous year, citing weak U.S. demand and new tariffs. The company’s stock reacted with a steep drop, falling about 15.5% intraday (from approximately $4.86 to $3.81), erasing nearly $1 billion in market capitalization.

By the next close, the total decline reached about 21.6% as investors digested the full extent of the negative news. Notably, the broader market was essentially flat that day, suggesting Coty’s decline may have been due to company-specific developments. Attorneys may examine whether Coty’s earlier statements accurately reflected the company’s internal knowledge of weakening demand and inventory challenges.

On Feb. 19, 2025, at the CAGNY Conference, Coty executives told investors to expect “steady gross [margin] and EBITDA margin expansion” and “double-digit adjusted EPS growth” in the coming years. Executives expressed confidence in “fueling Coty’s outperformance of the global beauty market and deliver[ing] long-term growth."

These optimistic projections were made despite internal trends that later were revealed to be negative, such as softening U.S. demand and retailer destocking. Further, on May 6, 2025, Coty lowered its FY2025 profit forecast and postponed its investor day, citing “macroeconomic and tariff uncertainty.” This news led to a roughly 3% drop in after-hours trading.

The following day, Coty reported Q3 results with earnings per share of $0.01 versus $0.06 expected, and the stock fell about 3.5% in pre-market trading. Despite these disappointing results, management allegedly continued to reassure investors of the company's resiliency and growth prospects.

Lawyers may investigate whether these assurances were consistent with the information known internally at the time.

A key area of potential concern is whether Coty adequately disclosed the impact of tariffs and retailer destocking. Public statements during the class period did not emphasize these headwinds, even though they later became central to explaining the company’s performance.

Legal professionals may review whether shareholders were informed about these material risks at the time they were making investment decisions.

The damages to investors appear significant. The estimated per-share inflation of $1.05, multiplied by the number of shares held by affected investors, suggests classwide losses could reach hundreds of millions of dollars.

Your Rights and Next Steps

Investors who purchased Coty securities during the class period and experienced losses may have important legal rights. This is currently an investigation, not a filed lawsuit. However, if lawyers uncover evidence that Coty may have misrepresented or failed to disclose material information, a class action lawsuit could be filed on behalf of affected investors.

If a class action moves forward, eligible investors may have the opportunity to recover some or all of their losses. Joining the investigation does not obligate investors to participate in any future lawsuit, but it ensures they are informed about developments and potential recovery options.

Lawyers are ready to help investors understand their rights and evaluate whether they may be eligible for compensation. Investors are encouraged to act promptly, as securities investigations and class actions often have strict deadlines.

You May Be Entitled to Compensation

If you purchased or acquired Coty securities between Feb. 19, 2025, and Aug. 19, 2025, and suffered losses following the company’s disclosures, you may be eligible to join this investigation and seek compensation. Securities investigations are time-sensitive, so it is important to act quickly to protect your rights.

To find out if you qualify and to join the investigation, complete the form below.