Bleichmar Fonti & Auld LLP investigates Coty for potential securities law violations.

• Coty Inc. under investigation by Bleichmar Fonti & Auld LLP • Allegations of potential violations of federal securities laws • Investigation focuses on Coty's Prestige fragrance demand and inventory • Company reported decline in demand, but retailers were overstocked • Stock declined after Coty revealed the truth about its products.

Coty Inc. (NYSE: COTY), one of the world’s largest beauty companies, is facing an investigation by Bleichmar Fonti & Auld LLP (BFA) for potential violations of federal securities laws. The investigation, announced on August 27, 2025, centers around Coty's reported demand for Prestige fragrances and the company's inventory management practices.

During the relevant period, Coty touted its Prestige fragrance demand while noting that retailers were keeping inventory "tight." However, it appears that retailers were overstocked with inventory because demand for Coty’s products had declined. This discrepancy was revealed in Coty's disappointing 4Q and FY 2025 financial results, which were reported on August 20, 2025. The company cited several factors for its underperformance, including delays in identifying weaknesses in its U.S. execution, retailer inventory buildup, and headwinds from lapping fiscal year '24 innovation. The company also noted a slowdown in cosmetics due to "value-seeking behavior, some fatigue with innovation, and U.S.-specific factors like in-store and anti-theft measures and immigration policy changes."

The revelation of these issues led to a significant decline in Coty's stock price. On August 20, 2025, the stock was trading at $4.86 per share, but by August 21, 2025, it had declined by $1.05 per share, or 21%, to $3.81 per share. Investors are urged to contact BFA for more information and potential legal options. All representation by BFA is on a contingency fee basis, with no cost to investors.

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. The firm has a strong track record of success, having recovered over $900 million in value from Tesla, Inc.’s Board of Directors and $420 million from Teva Pharmaceutical Ind. Ltd.

Investors are advised to stay informed about this ongoing investigation and its potential impact on Coty's stock price and financial health. For more information, please visit BFA's website or contact Ross Shikowitz at ross@bfalaw.com or 212.789.3619.

References:
[1] https://www.businesswire.com/news/home/20250827161305/en/COTY-BREAKING-NEWS-BFA-Law-is-Investigating-Coty-Inc.-for-Securities-Fraud-after-Stock-Drops-21-on-U.S.-Execution----Investors-are-Urged-to-Contact-the-Firm
[2] https://finance.yahoo.com/news/5-most-interesting-analyst-questions-053053297.html
[3] https://www.morningstar.com/news/business-wire/20250827161305/coty-breaking-news-bfa-law-is-investigating-coty-inc-for-securities-fraud-after-stock-drops-21-on-us-execution-investors-are-urged-to-contact-the-firm