Investors who bought Coty shares between Nov. 5, 2025, and Feb. 4, 2026, filed class-action lawsuits alleging the company misled markets about its outlook and performance. TheStreet reported the suits followed weak fiscal second-quarter results, withdrawn 2026 EBITDA guidance and a sharp share-price decline; the allegations are not established findings.
According to court filings, plaintiffs claim Coty projected confidence in its second-half 2026 growth while emphasizing product innovation, new launches, improvements in its Consumer Beauty segment, and artificial intelligence (AI) initiatives. At the same time, the company allegedly downplayed risks associated with softening demand in the beauty market.
In December 2023, Coty said it would phase in at least 14 weeks of fully paid parental leave for all employees, including those adopting or using surrogacy, by the end of fiscal 2024. The company also set goals for gender balance in leadership and DEI training by 2025, and reported a gender pay gap below 2% in global management.
Coty said it was expanding its global parental leave policy on Tuesday and providing all employees, regardless of gender, access to a minimum of 14 weeks of fully paid parental leave, including employees who choose the adoption and surrogacy routes.
Aside from updating its parental leave policy, the beauty and fragrance giant also announced other diversity, equity and inclusion initiatives in its sustainability report. Coty said it had set targets to achieve gender balance in leadership positions by 2025 and plans on rolling out DEI training for all employees by then.
The cosmetics and fragrance brand also said it had achieved its 2022 pay equity goal and has a gender pay equity gap of less than 2% across all its global management.
Coty said it cut Scope 1 and 2 emissions by 82%, exceeding its initial 50% goal, and reduced energy consumption by 23%, above its 20% objective. It reported that 94% of operational electricity came from renewable sources and set a goal to reduce Scope 3 emissions 28% by 2030 from a 2019 baseline.
On the environmental front, the company said it had made headwinds on achieving its scope 1 and 2 emissions reduction goals, aligned with the Science Based Targets initiative, and reduced emissions by 82%, surpassing its initial goal of 50%. Coty added it had made significant progress in establishing a scope 3 emissions reduction plan and engaging with its brands to drive action. The company is looking to cut its scope 3 emissions 28% by 2030, compared to a 2019 baseline, and will launch an acceptance criteria for product innovation to accelerate scope 3 reductions in the upcoming fiscal year.
Coty reported that its energy use was 19% below its 2019 baseline by the end of fiscal 2026. At its Riverside, Maryland, distribution center, it upgraded 2,596 lights to LEDs; the company said the project aims to cut lighting energy use 25% and saves about $80,000 annually in energy costs.
As part of its sustainability strategy, the beauty giant swapped out nearly 2,600 fixtures in a Maryland facility, cutting lighting-related energy consumption by 25%.
Beauty conglomerate Coty has implemented several initiatives to reduce energy consumption across its global distribution network, according to a FY26 sustainability report.
On April 27, 2022, Coty said it would exit its Russian operations following Moscow’s invasion of Ukraine. The company said Russia accounted for just over 3% of its 2021 sales and that the move was not expected to affect fiscal 2022 revenue or profit targets, citing the business’s seasonally lower fourth-quarter contribution.
April 27 (Reuters) - CoverGirl owner Coty Inc (COTY.N), opens new tab said on Wednesday it would exit its Russia operations, becoming the latest U.S. company to pull out of the country following Moscow's invasion of Ukraine.
Coty agreed to settle a proposed class action brought by Antoinette Meza and Chelsea Garland over claims that CoverGirl and Rimmel foundation labels misled customers about sunscreen protection duration. The products combined “24HR” or “25HR” wear claims with SPF 20 statements. The parties planned to seek dismissal by July 10, 2024; the report does not state the settlement terms.
Coty Inc. agreed to a settlement in a proposed class action alleging the company misled customers about the duration of sunscreen protection in its long-lasting foundation products.
A California 60-day notice filed Aug. 16, 2024, by Environmental Health Advocates named Coty and Ulta over alleged diethanolamine in CoverGirl Professional Natural Lash Mascara. The notice was amended, and a corrected complaint was filed in Alameda County Superior Court in November 2024. The state record identifies requested warning and civil-penalty relief; it does not establish a violation.
In a lawsuit filed April 23, 2026, DB Ventures, which owns the David Beckham fragrance brand, alleged Coty materially breached its licence agreement, including by allowing fragrances to be sold at gas stations, and sought at least $41 million in damages. Coty called the claims “without merit” and said it would defend itself vigorously.
DB Ventures, which is seeking damages of at least $41 million, said Coty had mismanaged the brand in allowing David Beckham fragances to allegedly be sold in gas stations.
Coty said its fiscal 2026 sustainability report showed a 48% reduction in air freight since 2019, as it expands sea and rail transport and aims to bring air freight reliance close to zero. Air freight emissions nevertheless rose 33% year over year amid supply-chain disruptions; Coty said shifting transport limited the increase.
Coty is changing how it transports its products by reducing reliance on air freight and using lower-emissions transport and logistics options, according to its fiscal year 2026 sustainability report.