PR Newswire·Apr 16, 2026, 9:00 AM ET

COTY Lawsuit Alleges Company Allegedly Misled Analysts - Coty Inc. Investors Face Losses Following Company Allegedly Misled Analysts: SueWallSt

Coty Inc. (NYSE: COTY) shares declined 22%, falling from $3.43 to $2.66 per share following corrective disclosures on February 4-5, 2026.
A lawsuit alleges sell-side analyst expectations were based on incomplete & misleading company disclosures regarding management guidance.
In November 2025, Coty management projected a return to sales growth in H2 FY2026 & approximately $1 billion in full-year adjusted EBITDA.
February 2026 results revealed Prestige fragrance sell-out was "flattish," Consumer Beauty underperformed the U.S. mass cosmetics category, & full-year EBITDA guidance was withdrawn.
Q3 adjusted EBITDA was estimated at $100 million to $110 million, implying near-breakeven adjusted EPS, while a CEO transition was announced.
Interim CEO Markus Strobel acknowledged investor skepticism regarding Coty's long-term competitiveness & admitted operational discipline had slipped over the past two years.
The lead plaintiff deadline for the class action lawsuit is May 22, 2026.
Levi & Korsinsky, LLP is identified as the lead securities litigation firm handling the case.