COTY Lawsuit Alleges Officers Allegedly Certified False Statements - Coty Inc. Investors Face Losses Following Officers Allegedly Certified False Statements: SueWallSt

Important Information Regarding Section 20(a) Individual Liability Claims

NEW YORK, May 7, 2026 /PRNewswire/ -- SueWallSt alerts investors in Coty Inc. (NYSE: COTY) of a pending securities class action naming two senior executives as individual defendants. Class Period: November 5, 2025 through February 4, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (888) SueWallSt.

Coty shares fell from $3.43 to $2.66, a loss of $0.77 per share (22%), after the Company withdrew its $1 billion adjusted EBITDA target and admitted to widespread operational failures. The Court has set May 22, 2026 as the deadline to apply for lead plaintiff appointment.

The Named Individual Defendants

Sue Nabi, Chief Executive Officer and Director, and Laurent Mercier, Chief Financial Officer, are each named as individual defendants in this action. The complaint charges that both executives possessed the power and authority to control the contents of Coty's SEC filings, press releases, and presentations to analysts and institutional investors. Each was provided with copies of the Company's public statements prior to or shortly after issuance and had the ability to prevent their release or cause them to be corrected, the action claims.

Section 20(a) Control Person Framework

Section 20(a) of the Securities Exchange Act of 1934 imposes liability on individuals who control entities that violate securities laws. The complaint asserts that Nabi and Mercier, by virtue of their senior positions, stock ownership, and day-to-day operational authority, acted as controlling persons of Coty during the Class Period. As controlling persons, they are alleged to be jointly and severally liable for the Company's misstatements.

Sarbanes-Oxley Certification Obligations

Under Sections 302 and 906 of the Sarbanes-Oxley Act, the CEO and CFO personally certify the accuracy of quarterly and annual SEC filings. The lawsuit contends that the Individual Defendants signed certifications attesting that Coty's public disclosures did not contain untrue statements of material fact or omit material facts necessary to make the statements not misleading. According to the pleading, these certifications were made while:

• The Consumer Beauty segment was materially underperforming relative to the U.S. mass cosmetics category
• Prestige fragrance sell-out was flattish, lagging the market by several points in Q2
• Operational discipline had deteriorated across the organization over the prior two years
• The number of SKUs in the annual CoverGirl innovation bundle had nearly doubled, significantly increasing costs

Scienter Allegations

The complaint further alleges that the Individual Defendants knew, or recklessly disregarded, that their public statements were materially misleading. As averred in the filing, both defendants had direct access to internal data showing widening gaps between sell-in and sell-out, compressed margins from increased marketing spending, and the erosion of operational controls that contradicted the positive growth narrative presented to investors.

"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives personally certify SEC filings while allegedly aware of contradictory internal trends, the securities laws provide shareholders with a path to accountability." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering damages or call (888) SueWallSt.

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SOURCE SueWallSt.com