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Coty Faces Securities Lawsuit After Profit Collapse, CEO Exit, and Withdrawn Guidance

Coty Inc. is facing a securities class action lawsuit following a turbulent stretch that saw its Consumer Beauty operating income fall by more than 70% year

Published: Apr 6, 2026 9:15 AM

By RETAILBOSS Team

LawsuitNews

Coty Faces Securities Lawsuit After Profit Collapse, CEO Exit, and Withdrawn Guidance

Credits: A brand of the Coty Group (Gucci).

Coty Inc. is facing a securities class action lawsuit following a turbulent stretch that saw its Consumer Beauty operating income fall by more than 70% year over year, its CEO depart without explanation, and the company withdraw its full-year 2026 financial guidance. The suit, filed by national shareholders’ rights firm Hagens Berman, seeks to represent investors who purchased Coty common stock between November 5, 2025, and February 4, 2026.

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%.

Coty also withdrew its FY 2026 EBITDA and free cash flow guidance entirely, a move that drove shares down a further 8% that day.

What Hagens Berman Is Claiming The lawsuit alleges that Coty made false and misleading statements while failing to disclose that the Consumer Beauty market was materially underperforming, margins were being compressed by increased marketing investments, and prestige fragrance growth was already slowing at the time of its November assurances to investors…

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Coty Faces Securities Lawsuit After Profit Collapse, CEO Exit, and Withdrawn Guidance

Coty Inc. is facing a securities class action lawsuit following a turbulent stretch that saw its Consumer Beauty operating income fall by more than 70% year

What Triggered the Lawsuit

Unlock the rest of this story

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