Class Action Suit Hits Estee Lauder

Class Action Suit Hits Estee Lauder

THE WHAT?  A class action lawsuit has been filed against The Estee Lauder Companies Inc. in the U.S. District Court for the Southern District of New York. This lawsuit covers all persons and entities who bought or acquired Estee Lauder’s common stock from August 18, 2022, to May 2, 2023.

THE DETAILS The lawsuit claims that Estee Lauder made false and unrealistic statements about the demand for its products and the state of its inventory. These allegations point to the company’s attempts to hide its actual market performance. On May 3, 2023, Estee Lauder reported lower than expected sales and profits, leading to a cut in its fiscal year outlook.

THE WHAT? Following the May 3 announcement, Estee Lauder’s stock price dropped significantly, from $245.22 per share on May 2 to $202.70 per share on May 3. The lawsuit connects this drop to the revelation of the company’s weaker market performance, which contradicted earlier statements.