Coty Inc. (COTY) Investigation

Coty is one of the largest beauty companies, with a portfolio of brands across fragrance, color cosmetics, and skin and body care. The company has two reporting segments – Prestige and Consumer Beauty – which accounted for about 65% and 35% of Coty’s revenues during 2025.

The investigation is focused on the propriety of Coty’s disclosures to investors concerning the company’s growth trajectory within its segments and the success of its digital inventory strategy (“SAP S/4HANA) transition, which Coty has repeatedly said since August 2024 “went off without a hitch[]” but has also occasioned “inventory buildup” at the company.

On August 21, 2025, Coty’s disclosures may have come into question, when Coty reported a very weak Q4 and revealed during its earnings call that it experienced significant year-over-year revenue decreases in both Prestige and Consumer Beauty. The company blamed its financial performance, in part, on its retailers’ inventory reduction (“destocking”), a phenomenon the company has downplayed since its SAP S/4HANA transition, which supposedly “went off without a hitch.”

This news drove the price of Coty shares sharply lower that day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the COTY investigation about?

We are investigating whether Coty may have misled investors about possibly overloading its retailers with excess inventory to reduce its inventory buildup and/or hit its earnings expectations.

WHAT SHOULD I DO?

I worked at COTY. What should I do?

If you were an employee of COTY, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in COTY, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any COTY investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.