Coty Inc. faces securities class action over alleged misstatements; investors in Nov 5, 2025 – Feb 4, 2026 may be affected

Coty Inc. (NYSE: COTY) is facing a securities class action lawsuit seeking to represent investors who purchased or otherwise acquired the company’s common stock between November 5, 2025 and February 4, 2026.

The lawsuit follows Coty’s February 5, 2026 Q2 2026 earnings report, which cited serious operational issues, and the abrupt departure of CEO Sue Y. Nabi. The news contributed to Coty shares falling more than 8% on February 5, 2026.

Allegations and timeline

According to the complaint, the case centers on the accuracy of Coty’s disclosures regarding business trends across its two segments—Prestige and Consumer Beauty.

In connection with its Q1 2026 financial results, Coty told investors on November 5, 2025 that it expected improvement in sales trends over fiscal 2026. The company also reaffirmed its FY 2026 adjusted EBITDA target of $1 billion, with CEO Sue Y. Nabi stating: “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 Coty made false and misleading statements by not disclosing that the Consumer Beauty market was underperforming, that margins were compressed due to increased marketing investments, and that Prestige fragrance growth was slowing.

Investors began to learn more about the situation in the weeks after the Q1 report. On December 12, 2025, Coty announced without explanation that Nabi would depart as CEO, and the stock fell significantly after the announcement.

Q2 2026 results and guidance withdrawal

On February 5, 2026, Coty reported its Q2 2026 financial results. The company disclosed that Consumer Beauty operating income fell by more than 70% versus the year-ago period. Prestige operating income also declined, falling by more than 18% year over year.

Coty also withdrew its FY 2026 guidance for EBITDA and free cash flow.

During the earnings call, management said: “For Q3, we expect like-for-like revenue trends to decline mid-single digits, driven primarily by bigger declines in Consumer Beauty.” Management also stated it “estimate[s] that the headwinds from retailer destocking significantly reduced in the quarter, the promotional environment intensified as we moved through the holiday period and remains elevated, which is a headwind to net sales and, by extension gross margin.”

Following the earnings release, Coty shares declined more than 8% that day.

Firm investigation and lead plaintiff deadline

Hagens Berman said it is investigating whether Coty intentionally misled investors about segment business trends and whether the year-over-year softness could be related to earlier reported destocking issues. The firm also said it is looking into the circumstances surrounding Nabi’s abrupt and unexplained departure.

Reed Kathrein, the Hagens Berman partner leading the investigation, said: “We’re investigating whether Coty may have intentionally misled investors about its segment business trends and, if so, whether the year-over-year softness might be related to earlier reported destocking issues. We’re also looking at the circumstances surrounding Ms. Nabi’s abrupt and unexplained departure.”

Class Period: Nov. 5, 2025 – Feb. 4, 2026
Lead Plaintiff Deadline: May 22, 2026

Whistleblower information

The firm also encouraged potential whistleblowers with non-public information about Coty to consider their options, including the SEC Whistleblower program. It noted that under the program, whistleblowers who provide original information may receive rewards totaling up to 30% of any successful recovery made by the SEC.

Contact details (as provided in the source)

Website: www.hbsslaw.com/investor-fraud/coty
Contact the firm now: [email protected]
Phone: 844-916-0895