×
23 779
Fashion Jobs
TIFFANY & CO
IT Functional Manager - Manufacturing
Permanent · Parsippany-Troy Hills
VICTORIA'S SECRET
Associate Art Director
Permanent · New York
BATH & BODY WORKS
Stores Finance - Financial Analyst
Permanent · Reynoldsburg
ESTÉE LAUDER COMPANIES
Keyholder - Cosmetic Company Store - 20 Hours - Tanger Outlets - Des Moines, ia
Permanent · Des Moines
ARAMIS AND DESIGNER FRAGRANCES
Retail Fragrance Selling Specialist - The Estee Lauder Companies - 35 Hrs - Woodbridge Center - Woodbridge, nj
Permanent · Woodbridge Township
VICTORIA'S SECRET
Brand Operations Manager-Concord
Permanent · Wilmington
VICTORIA'S SECRET
District Manager - Victoria’s Secret - Northern New England
Permanent · Manchester
ALICE AND OLIVIA
Sales Supervisor - Palm Beach
Permanent · Palm Beach
ESTÉE LAUDER
Training Manager - Estee Lauder - 40 Hours - Herald Square- Macy's - New York, ny
Permanent · New York
ESTÉE LAUDER COMPANIES
Senior Producer/Project Manager - Elc Online
Permanent · New York
BATH & BODY WORKS
District Manager - Bath & Body Works - Raleigh
Permanent · Raleigh
L'OREAL GROUP
l'Oreal Usa, Manager of Performance Marketing & Consumer Acquisition
Permanent · York
L'OREAL GROUP
Senior Manager, Marketing- Cerave us
Permanent · New York
L'OREAL GROUP
Manager, Global Marketing (Cerave)
Permanent · New York
L'OREAL GROUP
sr Analyst- Acd Dmi Finance
Permanent · New York
L'OREAL GROUP
Director - Corporate PR
Permanent · New York
L'OREAL GROUP
Manager - Customer Marketing (Target)
Permanent · New York
HUGO BOSS
Junior Account Executive
Permanent · New York
NEIMAN MARCUS
la Mer Business Manager - Sales Salary Plus
Permanent · Millburn
NEIMAN MARCUS
Loss Prevention Associate
Permanent · Troy
NEIMAN MARCUS
Tom Ford Business Manager - Sales Salary Plus
Permanent · Paramus
NEIMAN MARCUS
sr Manager Retail Performance & Store Operations
Permanent · Garden City

Shareholders mount class action lawsuit against Coty

Published
Sep 10, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

NYC-based cosmetics conglomerate Coty, Inc. and certain of its officers are facing a class action lawsuit from shareholders claiming that the company provided misleading information about its acquisitions of the P&G specialty beauty business and Kylie Cosmetics.


Part of the shareholders' complaint regards Coty's acquisition of Kylie Cosmetics earlier this year - Instagram: @kyliecosmetics

 
Filed by New York law firm Bronstein, Gewirtz & Grossman, on behalf of shareholders who acquired Coty securities between October 3, 2016 and May 28, 2020, the lawsuit seeks to recover damages for alleged violations of federal securities laws under the Securities Exchange Act of 1934.
 
According to the complaint, despite the company’s experience in the industry, Coty was not adequately positioned to properly value the acquisitions of the P&G specialty beauty business and Kylie Cosmetics, and therefore overpaid on both occasions.

The lawsuit further alleges that Coty did not have adequate infrastructure to undertake the smooth integration of the brands the company acquired from P&G and, as a result, had failed to successfully integrate them and deliver synergies.
 
The complaint therefore concludes that, during the period covered by the class action, “Coty's financial statements and defendants' statements about Coty's business, operations, and prospects, were materially false and/or misleading at all relevant times.”
 
The completion of the merger between Coty and P&G’s specialty beauty business in October 2016 made the company the third-largest beauty group in the world at the time.
 
For $12.5 billion, Coty acquired makeup brands including Covergirl, Max Factor and Sally Hansen, as well as haircare brand Wella and a slew of fragrance licenses, such as Hugo Boss, Gucci and Lacoste. The company also assumed around $1.9 billion in debt from the P&G specialty beauty business.
 
Coty first announced that it was acquiring a 51% stake in Kylie Cosmetics in November 2019 and closed the $600 million deal in January of this year. At the time the company also appointed Christoph Honnefelder as CEO of the brand, charging him with overseeing a strategic partnership focused on developing Kylie Cosmetics through global expansion and the exploration of new product categories.
 
Honnefelder has since exited the company, leaving Coty’s president for luxury brands, Simona Cattaneo, to oversee the expansion of the brand.
 
Coty reported annual net revenues of $6.74 billion in the fiscal year ended June 30, 2020, down 22% from the previous year, while net loss at the company was $1.01 billion, or $1.33 per diluted share.

Copyright © 2020 FashionNetwork.com All rights reserved.