Coty Inc. (COTY) Sued After Surprise Profit Decline, CEO Exit, and Withdrawn 2026 Guidance -- Hagens Berman

SAN FRANCISCO, April 1, 2026 /PRNewswire/ -- Coty Inc. (NYSE: COTY) faces a securities class action lawsuit which seeks to represent investors who purchased or otherwise acquired Coty common stock between November 5, 2025 and February 4, 2026.

The lawsuit follows Coty's February 5, 2026 Q2 2026 earnings report, depicting serious operational issues, and the abrupt departure of its CEO (Sue Y. Nabi).

This news drove the price of Coty shares down over 8% that day.

The developments have prompted national shareholders rights firm Hagens Berman to investigate claims that Coty violated the federal securities laws.

The firm urges investors in Coty who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.

Class Period: Nov. 5, 2025 – Feb. 4, 2026
Lead Plaintiff Deadline: May 22, 2026
Visit: www.hbsslaw.com/investor-fraud/coty
Contact the Firm Now: [email protected]
                                       844-916-0895

Coty Inc. (COTY) Securities Class Action:

Coty is one of the world's largest beauty companies, with brands across fragrance, color cosmetics, and skin and body care. The company operates through two segments – Prestige and Consumer Beauty.

The lawsuit is focused on the propriety of Coty's disclosures about business trends within these segments.

Specifically, on November 5, 2025, in connection with the company's Q1 2026 financial results, Coty assured investors that it expected improvement in sales trends over the course of fiscal 2026. Nabi specifically assured investors that "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 company reaffirmed its FY 2026 adjusted EBITDA target of $1 billion.

The complaint alleges that Coty made false and misleading statements while failing to disclose that the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments, and Prestige fragrance growth was slowing. 

Investors began to learn the truth a few weeks after the Q1 report when, on December 12, 2025, Coty announced without explanation the departure of CEO Nabi, driving the price of Coty shares significantly lower.

Then, on February 5, 2026, the company announced its Q2 2026 financial results, revealing that Consumer Beauty's operating income plummeted over 70% from the year earlier period. In addition, though less severe, Prestige's operating income fell over 18% from the year earlier period. Coty also withdrew its FY 2026 EBITDA and free cash flow guidance.

Management said during the earnings call that day, "[f]or Q3, we expect like-for-like revenue trends to decline mid-single digits, driven primarily by bigger declines in Consumer Beauty[]" and revealed "we estimate 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."

This news drove the price of Coty shares down over 8% that day.

"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. " said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Coty and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Coty case and the firm's investigation, read more »

Whistleblowers: Persons with non-public information regarding Coty should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP