Coty Faces Securities Lawsuit After Profit Collapse, CEO Exit, and Withdrawn Guidance

What Triggered the Lawsuit The complaint centers on a sequence of events that unfolded over roughly three months. On November 5, 2025, Coty reported its Q1 fiscal 2026 results and reassured investors that sales trends were improving in line with expectations. CEO Sue Y.

Nabi specifically told investors: “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.” The company reaffirmed its FY 2026 adjusted EBITDA target of $1 billion.

Just weeks later, on December 12, 2025, Coty announced Nabi’s departure without providing any explanation, sending shares significantly lower.

Then, on February 5, 2026, the company’s Q2 results revealed that Consumer Beauty’s operating income had plummeted by more than 70% from the prior year, while Prestige’s operating income had fallen by more than 18%…