Coty Sued After 70% Consumer Beauty Income Plunge and CEO’s Abrupt Exit
Coty faces a class action alleging it misled investors after Q2 2026 results revealed Consumer Beauty operating income plunged over 70% and Prestige income fell 18%, prompting withdrawal of FY2026 EBITDA guidance and CEO Sue Nabi’s abrupt exit. The suit covers purchases from November 5, 2025 to February 4, 2026.
1. Lawsuit Filing and Class Period
A securities class action was filed on behalf of investors who acquired Coty common stock between November 5, 2025 and February 4, 2026, alleging violations of federal securities laws. The complaint seeks representation for shareholders who suffered losses in excess of 8% following the February earnings update.
2. Allegations of Misleading Disclosures
The complaint alleges Coty assured investors during its Q1 2026 results on November 5, 2025 that fiscal 2026 business trends would improve and reaffirmed a $1 billion adjusted EBITDA target, while failing to disclose underperforming Consumer Beauty margins and slowing growth in its Prestige fragrance segment.
3. Q2 Financial Declines and CEO Exit
On February 5, 2026, Coty reported Q2 2026 operating income declines of over 70% in Consumer Beauty and 18% in Prestige, withdrew its full-year EBITDA guidance and revealed that headwinds from retailer destocking and elevated promotions weighed on margins. CEO Sue Nabi then departed abruptly, triggering an over 8% share price drop.
4. Investor Actions and Whistleblower Options
Investors who incurred significant losses are encouraged to submit claims by the May 22, 2026 lead plaintiff deadline to participate in the case. Individuals with non-public information may explore SEC whistleblower provisions offering potential awards of up to 30% of any recovery.