Securities Firms Investigate Coty Inc. Following 21% Stock Drop

Multiple leading securities law firms, including Bragar Eagel & Squire, Bleichmar Fonti & Auld LLP, and Levi & Korsinsky LLP, have launched investigations into Coty Inc. for potential violations of federal securities laws following the company's disappointing fiscal year 2025 financial results. Coty reported unexpected losses and provided weak guidance, citing challenges such as moderating profit in the beauty market, value-seeking consumer behavior, innovation fatigue, and external factors like anti-theft and immigration policy changes. The company also acknowledged delays in identifying weaknesses in U.S. execution and retailer inventory build-up despite previously touting strong demand for its Prestige fragrances, which represent a major portion of its revenue. These revelations led to a sharp decline in Coty’s stock price by over 21%, raising concerns about possible misrepresentations to investors. Affected shareholders are being encouraged by these firms to explore their legal rights, with representation typically offered on a contingency fee basis. The investigations aim to determine whether Coty engaged in misleading statements or other unlawful practices impacting investor confidence and market stability.