OKLAHOMA CITY--(BUSINESS WIRE)--The law firm of Federman & Sherwood has initiated an investigation into Coty, Inc. [NYSE: COTY] with respect to possible violations of federal securities laws.
Coty is one of the world’s largest beauty companies, with an iconic portfolio of brands across fragrance, color cosmetics, hair color and styling, and skin and body care. Coty is the global leader in fragrance, a strong number two in professional hair color & styling, and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. Federman & Sherwood’s investigation focuses on disclosures made by Coty and whether certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On November 18, 2019, Coty announced that it was taking a majority stake in Kylie Cosmetics. The deal gave Coty a 51% stake in the makeup company for $600 million. On this announcement in premarket trading, Coty’s stock initially jumped as much as 6%. In January, 2020, Coty purchased 51% of Kylie Cosmetics for $1.2 billion.
On May 29, 2020 Coty’s shares declined after Forbes Magazine reported that “Coty paid up for a 'high-growth' brand that is actually a much smaller business than it was just a few years ago.” Forbes went on to report that “the business was never that big to begin with, and the Jenners [a/k/a Kardashians] have lied about it every year since 2016,” including the possibility that tax returns may have false numbers.
If you purchased shares of Coty securities or have information to assist in our investigation, or have any questions or concerns regarding this notice or preservation of your rights as a shareholder, please contact our office. Federman & Sherwood has extensive nationwide experience in representing investors in securities, shareholder derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.