THE WHAT? Coty is set to face a federal securities class action lawsuit, filed in the US District Court for the Southern District of New York on behalf of investors that purchased or acquired stock in the US beauty behemoth between October 3, 2016 and May 28, 2020.
THE DETAILS Shareholders that fit the criteria are being invited to join the suit, which alleges that Coty made materially false and/or misleading statements and/or failed to disclose material adverse facts about its business, operations and prospects.
THE WHY? Coty has struggled since its purchase of the P&G beauty portfolio and this suit alleges that, despite being no stranger to acquisitions, the US beauty behemoth didn’t have adequate processes and procedures in place to properly value either the P&G portfolio or its subsequent purchase of Kylie Cosmetics and, as a result, overpaid for both.