Shareholders Sue Coty

In its effort to expand into new categories and get a following among younger consumers, Coty Inc acquired several brands from Procter & Gamble and, later, purchased Kylie Cosmetics. Now, shareholders want an explanation and compensation. Coty faces 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 Coty between October 3, 2016 and May 28, 2020. According to the lawsuit, Coty made materially false and/or misleading statements and/or failed to disclose material adverse facts about its business, operations and prospects.

Plaintiffs insist that Coty didn't have 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.