News

Coty Hit With Securities Class Action After 70% Income Plunge, CEO Exit and Withdrawn Fiscal Guidance

Coty Inc. is facing a securities class action lawsuit after a sharp year over year deterioration in operating performance, the abrupt departure of CEO Sue Y.

Published: Apr 2, 2026 7:33 AM

By Jeanel Alvarado

News

Add RETAILBOSS as Preferred Source

News

Coty Hit With Securities Class Action After 70% Income Plunge, CEO Exit and Withdrawn Fiscal Guidance

Credit: COTY

Coty Inc. is facing a securities class action lawsuit after a sharp year over year deterioration in operating performance, the abrupt departure of CEO Sue Y. Nabi, and the withdrawal of its fiscal 2026 guidance rattled investors. The case, led by plaintiffs’ firm Hagens Berman, focuses on whether Coty misled the market about segment trends and its growth trajectory in the months leading up to a disappointing Q2 2026 earnings release.

What Triggered The Lawsuit The proposed class action covers investors who bought Coty shares between November 5, 2025 and February 4, 2026, with a lead plaintiff deadline of May 22, 2026. On November 5, 2025, tied to its Q1 2026 results, Coty reaffirmed an adjusted EBITDA target of $1 billion for FY 2026.

Nabi said, “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 complaint alleges those assurances were misleading because Coty did not fully disclose that its Consumer Beauty segment was underperforming, that margins were being squeezed by higher marketing spend, and that growth in Prestige fragrance was slowing.

On December 12, 2025, the company announced Nabi’s departure without detailed explanation, a move that pushed the share price lower and raised fresh questions about strategy and execution…

Members-only article

Unlock the rest of this story

Join free to keep reading RetailBoss news coverage, industry analysis, and market intelligence.

Company

Account name Used publicly if you comment. We encourage your real first name.

Password

Send me RetailBoss newsletter emails through Substack. I can unsubscribe anytime. Confirm that I want to create a free RetailBoss account.

Free access. No credit card required. Your account is created after you verify your email.

RetailBoss is an independent global news publication and business insights platform built for executives, founders, operators, analysts, marketers, investors, and brand leaders. Our reporting covers the retail shifts across luxury, fashion, beauty, technology and marketing strategy.

Since: 2011
Audience: 50 Million+
Coverage: Global Markets

Our editorial stance

We prioritize news value, evidence, attribution, and practical relevance to retail decision-makers. Sponsored work is identified, and editorial coverage is kept distinct from commercial partnerships.